Correlation Between Evolv Technologies and Universal Security
Can any of the company-specific risk be diversified away by investing in both Evolv Technologies and Universal Security 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 Evolv Technologies and Universal Security into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolv Technologies Holdings and Universal Security Instruments, you can compare the effects of market volatilities on Evolv Technologies and Universal Security 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 Evolv Technologies with a short position of Universal Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolv Technologies and Universal Security.
Diversification Opportunities for Evolv Technologies and Universal Security
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Evolv and Universal is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Evolv Technologies Holdings and Universal Security Instruments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Security and Evolv Technologies 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 Evolv Technologies Holdings are associated (or correlated) with Universal Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Security has no effect on the direction of Evolv Technologies i.e., Evolv Technologies and Universal Security go up and down completely randomly.
Pair Corralation between Evolv Technologies and Universal Security
Assuming the 90 days horizon Evolv Technologies Holdings is expected to generate 0.79 times more return on investment than Universal Security. However, Evolv Technologies Holdings is 1.27 times less risky than Universal Security. It trades about 0.19 of its potential returns per unit of risk. Universal Security Instruments is currently generating about 0.14 per unit of risk. If you would invest 43.00 in Evolv Technologies Holdings on June 5, 2025 and sell it today you would earn a total of 47.00 from holding Evolv Technologies Holdings or generate 109.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolv Technologies Holdings vs. Universal Security Instruments
Performance |
| Timeline |
| Evolv Technologies |
| Universal Security |
Evolv Technologies and Universal Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolv Technologies and Universal Security
The main advantage of trading using opposite Evolv Technologies and Universal Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolv Technologies position performs unexpectedly, Universal Security 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 Universal Security will offset losses from the drop in Universal Security's long position.| Evolv Technologies vs. Bridger Aerospace Group | Evolv Technologies vs. BIO Key International | Evolv Technologies vs. Geo Group | Evolv Technologies vs. Guardforce AI Co |
| Universal Security vs. Allegion PLC | Universal Security vs. ALT5 Sigma | Universal Security vs. Evolv Technologies Holdings | Universal Security vs. Lendway |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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