Correlation Between Evolv Technologies and Indie Semiconductor
Can any of the company-specific risk be diversified away by investing in both Evolv Technologies and Indie Semiconductor 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 Indie Semiconductor 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 Indie Semiconductor Warrant, you can compare the effects of market volatilities on Evolv Technologies and Indie Semiconductor 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 Indie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolv Technologies and Indie Semiconductor.
Diversification Opportunities for Evolv Technologies and Indie Semiconductor
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Evolv and Indie is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Evolv Technologies Holdings and Indie Semiconductor Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indie Semiconductor 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 Indie Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indie Semiconductor has no effect on the direction of Evolv Technologies i.e., Evolv Technologies and Indie Semiconductor go up and down completely randomly.
Pair Corralation between Evolv Technologies and Indie Semiconductor
Assuming the 90 days horizon Evolv Technologies Holdings is expected to generate 1.76 times more return on investment than Indie Semiconductor. However, Evolv Technologies is 1.76 times more volatile than Indie Semiconductor Warrant. It trades about 0.03 of its potential returns per unit of risk. Indie Semiconductor Warrant is currently generating about 0.04 per unit of risk. If you would invest 65.00 in Evolv Technologies Holdings on August 28, 2024 and sell it today you would lose (41.00) from holding Evolv Technologies Holdings or give up 63.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.84% |
| Values | Daily Returns |
Evolv Technologies Holdings vs. Indie Semiconductor Warrant
Performance |
| Timeline |
| Evolv Technologies |
| Indie Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Evolv Technologies and Indie Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolv Technologies and Indie Semiconductor
The main advantage of trading using opposite Evolv Technologies and Indie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolv Technologies position performs unexpectedly, Indie Semiconductor 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 Indie Semiconductor will offset losses from the drop in Indie Semiconductor's long position.| Evolv Technologies vs. EVgo Equity Warrants | Evolv Technologies vs. Algoma Steel Group | Evolv Technologies vs. Landsea Homes |
| Indie Semiconductor vs. Nuvve Holding Corp | Indie Semiconductor vs. EVgo Equity Warrants | Indie Semiconductor vs. Paysafe Ltd Wt | Indie Semiconductor vs. Microvast Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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