Correlation Between Evertec and Mogo
Can any of the company-specific risk be diversified away by investing in both Evertec and Mogo 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 Evertec and Mogo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evertec and Mogo Inc, you can compare the effects of market volatilities on Evertec and Mogo 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 Evertec with a short position of Mogo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evertec and Mogo.
Diversification Opportunities for Evertec and Mogo
Excellent diversification
The 3 months correlation between Evertec and Mogo is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Evertec and Mogo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mogo Inc and Evertec 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 Evertec are associated (or correlated) with Mogo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mogo Inc has no effect on the direction of Evertec i.e., Evertec and Mogo go up and down completely randomly.
Pair Corralation between Evertec and Mogo
Given the investment horizon of 90 days Evertec is expected to under-perform the Mogo. But the stock apears to be less risky and, when comparing its historical volatility, Evertec is 2.72 times less risky than Mogo. The stock trades about -0.16 of its potential returns per unit of risk. The Mogo Inc is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 94.00 in Mogo Inc on January 14, 2025 and sell it today you would lose (13.00) from holding Mogo Inc or give up 13.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evertec vs. Mogo Inc
Performance |
| Timeline |
| Evertec |
| Mogo Inc |
Evertec and Mogo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evertec and Mogo
The main advantage of trading using opposite Evertec and Mogo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evertec position performs unexpectedly, Mogo 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 Mogo will offset losses from the drop in Mogo's long position.| Evertec vs. Consensus Cloud Solutions | Evertec vs. Global Blue Group | Evertec vs. EverCommerce | Evertec vs. CSG Systems International |
| Mogo vs. Katapult Holdings Equity | Mogo vs. International Money Express | Mogo vs. Bakkt Holdings | Mogo vs. Kaltura |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |