Correlation Between Evgo and Raytech Holding
Can any of the company-specific risk be diversified away by investing in both Evgo and Raytech Holding 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 Evgo and Raytech Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evgo Inc and Raytech Holding Limited, you can compare the effects of market volatilities on Evgo and Raytech Holding 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 Evgo with a short position of Raytech Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evgo and Raytech Holding.
Diversification Opportunities for Evgo and Raytech Holding
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evgo and Raytech is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Evgo Inc and Raytech Holding Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raytech Holding and Evgo 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 Evgo Inc are associated (or correlated) with Raytech Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raytech Holding has no effect on the direction of Evgo i.e., Evgo and Raytech Holding go up and down completely randomly.
Pair Corralation between Evgo and Raytech Holding
Given the investment horizon of 90 days Evgo is expected to generate 3.56 times less return on investment than Raytech Holding. But when comparing it to its historical volatility, Evgo Inc is 2.58 times less risky than Raytech Holding. It trades about 0.02 of its potential returns per unit of risk. Raytech Holding Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 292.00 in Raytech Holding Limited on May 29, 2025 and sell it today you would lose (37.00) from holding Raytech Holding Limited or give up 12.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evgo Inc vs. Raytech Holding Limited
Performance |
| Timeline |
| Evgo Inc |
| Raytech Holding |
Evgo and Raytech Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evgo and Raytech Holding
The main advantage of trading using opposite Evgo and Raytech Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evgo position performs unexpectedly, Raytech Holding 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 Raytech Holding will offset losses from the drop in Raytech Holding's long position.The idea behind Evgo Inc and Raytech Holding Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Raytech Holding vs. Steven Madden | Raytech Holding vs. Vera Bradley | Raytech Holding vs. Caleres | Raytech Holding vs. Wolverine World Wide |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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