Correlation Between Evolv Technologies and SSC Security
Can any of the company-specific risk be diversified away by investing in both Evolv Technologies and SSC Security 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 SSC Security 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 SSC Security Services, you can compare the effects of market volatilities on Evolv Technologies and SSC Security 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 SSC Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolv Technologies and SSC Security.
Diversification Opportunities for Evolv Technologies and SSC Security
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Evolv and SSC is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Evolv Technologies Holdings and SSC Security Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSC Security Services 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 SSC Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSC Security Services has no effect on the direction of Evolv Technologies i.e., Evolv Technologies and SSC Security go up and down completely randomly.
Pair Corralation between Evolv Technologies and SSC Security
Given the investment horizon of 90 days Evolv Technologies Holdings is expected to generate 5.63 times more return on investment than SSC Security. However, Evolv Technologies is 5.63 times more volatile than SSC Security Services. It trades about 0.59 of its potential returns per unit of risk. SSC Security Services is currently generating about 0.27 per unit of risk. If you would invest 225.00 in Evolv Technologies Holdings on September 5, 2024 and sell it today you would earn a total of 203.00 from holding Evolv Technologies Holdings or generate 90.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Evolv Technologies Holdings vs. SSC Security Services
Performance |
| Timeline |
| Evolv Technologies |
| SSC Security Services |
Evolv Technologies and SSC Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolv Technologies and SSC Security
The main advantage of trading using opposite Evolv Technologies and SSC Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolv Technologies position performs unexpectedly, SSC Security 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 SSC Security will offset losses from the drop in SSC Security's long position.| Evolv Technologies vs. First Responder Technologies | Evolv Technologies vs. Knightscope | Evolv Technologies vs. LogicMark | Evolv Technologies vs. Guardforce AI Co |
| SSC Security vs. Evolv Technologies Holdings | SSC Security vs. Knightscope | SSC Security vs. Evolv Technologies Holdings | SSC Security vs. NAPCO Security Technologies |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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