Correlation Between Nuvve Holding and EVgo Equity
Can any of the company-specific risk be diversified away by investing in both Nuvve Holding and EVgo Equity 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 Nuvve Holding and EVgo Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuvve Holding Corp and EVgo Equity Warrants, you can compare the effects of market volatilities on Nuvve Holding and EVgo Equity 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 Nuvve Holding with a short position of EVgo Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuvve Holding and EVgo Equity.
Diversification Opportunities for Nuvve Holding and EVgo Equity
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuvve and EVgo is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Nuvve Holding Corp and EVgo Equity Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVgo Equity Warrants and Nuvve Holding 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 Nuvve Holding Corp are associated (or correlated) with EVgo Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVgo Equity Warrants has no effect on the direction of Nuvve Holding i.e., Nuvve Holding and EVgo Equity go up and down completely randomly.
Pair Corralation between Nuvve Holding and EVgo Equity
Given the investment horizon of 90 days Nuvve Holding Corp is expected to under-perform the EVgo Equity. But the stock apears to be less risky and, when comparing its historical volatility, Nuvve Holding Corp is 1.21 times less risky than EVgo Equity. The stock trades about -0.05 of its potential returns per unit of risk. The EVgo Equity Warrants is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 70.00 in EVgo Equity Warrants on December 11, 2024 and sell it today you would lose (45.00) from holding EVgo Equity Warrants or give up 64.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuvve Holding Corp vs. EVgo Equity Warrants
Performance |
| Timeline |
| Nuvve Holding Corp |
| EVgo Equity Warrants |
Nuvve Holding and EVgo Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuvve Holding and EVgo Equity
The main advantage of trading using opposite Nuvve Holding and EVgo Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuvve Holding position performs unexpectedly, EVgo Equity 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 Equity will offset losses from the drop in EVgo Equity's long position.| Nuvve Holding vs. ChargePoint Holdings | ||
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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 Stocks Directory module to find actively traded stocks across global markets.
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