Correlation Between Evolv Technologies and PAR Technology
Can any of the company-specific risk be diversified away by investing in both Evolv Technologies and PAR Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Evolv Technologies and PAR Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolv Technologies Holdings and PAR Technology, you can compare the effects of market volatilities on Evolv Technologies and PAR Technology and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Evolv Technologies with a short position of PAR Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolv Technologies and PAR Technology.
Diversification Opportunities for Evolv Technologies and PAR Technology
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Evolv and PAR is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Evolv Technologies Holdings and PAR Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAR Technology and Evolv Technologies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Evolv Technologies Holdings are associated (or correlated) with PAR Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAR Technology has no effect on the direction of Evolv Technologies i.e., Evolv Technologies and PAR Technology go up and down completely randomly.
Pair Corralation between Evolv Technologies and PAR Technology
Given the investment horizon of 90 days Evolv Technologies is expected to generate 1.61 times less return on investment than PAR Technology. In addition to that, Evolv Technologies is 1.96 times more volatile than PAR Technology. It trades about 0.03 of its total potential returns per unit of risk. PAR Technology is currently generating about 0.1 per unit of volatility. If you would invest 2,288 in PAR Technology on September 2, 2024 and sell it today you would earn a total of 5,826 from holding PAR Technology or generate 254.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolv Technologies Holdings vs. PAR Technology
Performance |
| Timeline |
| Evolv Technologies |
| PAR Technology |
Evolv Technologies and PAR Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolv Technologies and PAR Technology
The main advantage of trading using opposite Evolv Technologies and PAR Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolv Technologies position performs unexpectedly, PAR Technology can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PAR Technology will offset losses from the drop in PAR Technology's long position.| Evolv Technologies vs. First Responder Technologies | Evolv Technologies vs. Knightscope | Evolv Technologies vs. LogicMark | Evolv Technologies vs. Guardforce AI Co |
| PAR Technology vs. CS Disco LLC | PAR Technology vs. PROS Holdings | PAR Technology vs. Meridianlink | PAR Technology vs. Enfusion |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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