Correlation Between SSC Security and Evolv Technologies
Can any of the company-specific risk be diversified away by investing in both SSC Security 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 SSC Security and Evolv Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSC Security Services and Evolv Technologies Holdings, you can compare the effects of market volatilities on SSC Security 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 SSC Security with a short position of Evolv Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSC Security and Evolv Technologies.
Diversification Opportunities for SSC Security and Evolv Technologies
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between SSC and Evolv is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding SSC Security Services and Evolv Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolv Technologies and SSC Security 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 SSC Security Services 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 SSC Security i.e., SSC Security and Evolv Technologies go up and down completely randomly.
Pair Corralation between SSC Security and Evolv Technologies
Assuming the 90 days horizon SSC Security is expected to generate 1.61 times less return on investment than Evolv Technologies. But when comparing it to its historical volatility, SSC Security Services is 1.26 times less risky than Evolv Technologies. It trades about 0.03 of its potential returns per unit of risk. Evolv Technologies Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 421.00 in Evolv Technologies Holdings on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Evolv Technologies Holdings or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSC Security Services vs. Evolv Technologies Holdings
Performance |
| Timeline |
| SSC Security Services |
| Evolv Technologies |
SSC Security and Evolv Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSC Security and Evolv Technologies
The main advantage of trading using opposite SSC Security and Evolv Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSC Security 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.| SSC Security vs. Evolv Technologies Holdings | SSC Security vs. Knightscope | SSC Security vs. Evolv Technologies Holdings | SSC Security vs. NAPCO Security Technologies |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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