Correlation Between EV Technology and Vicinity
Can any of the company-specific risk be diversified away by investing in both EV Technology and Vicinity 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 EV Technology and Vicinity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EV Technology Group and Vicinity Motor Corp, you can compare the effects of market volatilities on EV Technology and Vicinity 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 EV Technology with a short position of Vicinity. Check out your portfolio center. Please also check ongoing floating volatility patterns of EV Technology and Vicinity.
Diversification Opportunities for EV Technology and Vicinity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EVTGF and Vicinity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EV Technology Group and Vicinity Motor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vicinity Motor Corp and EV Technology 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 EV Technology Group are associated (or correlated) with Vicinity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vicinity Motor Corp has no effect on the direction of EV Technology i.e., EV Technology and Vicinity go up and down completely randomly.
Pair Corralation between EV Technology and Vicinity
If you would invest 0.41 in EV Technology Group on August 31, 2024 and sell it today you would earn a total of 0.00 from holding EV Technology Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
EV Technology Group vs. Vicinity Motor Corp
Performance |
| Timeline |
| EV Technology Group |
| Vicinity Motor Corp |
EV Technology and Vicinity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EV Technology and Vicinity
The main advantage of trading using opposite EV Technology and Vicinity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EV Technology position performs unexpectedly, Vicinity 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 Vicinity will offset losses from the drop in Vicinity's long position.| EV Technology vs. Genesis Electronics Group | EV Technology vs. Phoenix Motor Common | EV Technology vs. AYRO Inc | EV Technology vs. Mullen Automotive |
| Vicinity vs. Blue Bird Corp | Vicinity vs. AYRO Inc | Vicinity vs. BAIC Motor | Vicinity vs. Zapp Electric Vehicles |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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