Correlation Between Research Frontiers and Evolv Technologies
Can any of the company-specific risk be diversified away by investing in both Research Frontiers and Evolv Technologies 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 Research Frontiers and Evolv Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Research Frontiers Incorporated and Evolv Technologies Holdings, you can compare the effects of market volatilities on Research Frontiers and Evolv Technologies 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 Research Frontiers with a short position of Evolv Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Research Frontiers and Evolv Technologies.
Diversification Opportunities for Research Frontiers and Evolv Technologies
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Research and Evolv is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Research Frontiers Incorporate and Evolv Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolv Technologies and Research Frontiers 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 Research Frontiers Incorporated are associated (or correlated) with Evolv Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolv Technologies has no effect on the direction of Research Frontiers i.e., Research Frontiers and Evolv Technologies go up and down completely randomly.
Pair Corralation between Research Frontiers and Evolv Technologies
Given the investment horizon of 90 days Research Frontiers Incorporated is expected to under-perform the Evolv Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Research Frontiers Incorporated is 3.44 times less risky than Evolv Technologies. The stock trades about -0.31 of its potential returns per unit of risk. The Evolv Technologies Holdings is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 351.00 in Evolv Technologies Holdings on November 8, 2024 and sell it today you would earn a total of 65.00 from holding Evolv Technologies Holdings or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Research Frontiers Incorporate vs. Evolv Technologies Holdings
Performance |
| Timeline |
| Research Frontiers |
| Evolv Technologies |
Research Frontiers and Evolv Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Research Frontiers and Evolv Technologies
The main advantage of trading using opposite Research Frontiers and Evolv Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Research Frontiers position performs unexpectedly, Evolv Technologies 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 Evolv Technologies will offset losses from the drop in Evolv Technologies' long position.| Research Frontiers vs. Richardson Electronics | Research Frontiers vs. Orion Energy Systems | Research Frontiers vs. RF Industries | Research Frontiers vs. Reading International |
| Evolv Technologies vs. First Responder Technologies | Evolv Technologies vs. Knightscope | Evolv Technologies vs. LogicMark | Evolv Technologies vs. Guardforce AI Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |