Correlation Between Leslies and Evgo
Can any of the company-specific risk be diversified away by investing in both Leslies and Evgo 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 Leslies and Evgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leslies and Evgo Inc, you can compare the effects of market volatilities on Leslies and Evgo 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 Leslies with a short position of Evgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leslies and Evgo.
Diversification Opportunities for Leslies and Evgo
Very good diversification
The 3 months correlation between Leslies and Evgo is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Leslies and Evgo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evgo Inc and Leslies 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 Leslies are associated (or correlated) with Evgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evgo Inc has no effect on the direction of Leslies i.e., Leslies and Evgo go up and down completely randomly.
Pair Corralation between Leslies and Evgo
Given the investment horizon of 90 days Leslies is expected to generate 1.53 times more return on investment than Evgo. However, Leslies is 1.53 times more volatile than Evgo Inc. It trades about -0.04 of its potential returns per unit of risk. Evgo Inc is currently generating about -0.19 per unit of risk. If you would invest 288.00 in Leslies on August 29, 2024 and sell it today you would lose (43.00) from holding Leslies or give up 14.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leslies vs. Evgo Inc
Performance |
| Timeline |
| Leslies |
| Evgo Inc |
Leslies and Evgo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leslies and Evgo
The main advantage of trading using opposite Leslies and Evgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leslies position performs unexpectedly, Evgo 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 Evgo will offset losses from the drop in Evgo's long position.| Leslies vs. Sally Beauty Holdings | Leslies vs. ODP Corp | Leslies vs. 1 800 FLOWERSCOM | Leslies vs. Caseys General Stores |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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