Correlation Between Envirotech Vehicles and Newton Golf
Can any of the company-specific risk be diversified away by investing in both Envirotech Vehicles and Newton Golf 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 Envirotech Vehicles and Newton Golf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Envirotech Vehicles and Newton Golf, you can compare the effects of market volatilities on Envirotech Vehicles and Newton Golf 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 Envirotech Vehicles with a short position of Newton Golf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Envirotech Vehicles and Newton Golf.
Diversification Opportunities for Envirotech Vehicles and Newton Golf
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Envirotech and Newton is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Envirotech Vehicles and Newton Golf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newton Golf and Envirotech Vehicles 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 Envirotech Vehicles are associated (or correlated) with Newton Golf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newton Golf has no effect on the direction of Envirotech Vehicles i.e., Envirotech Vehicles and Newton Golf go up and down completely randomly.
Pair Corralation between Envirotech Vehicles and Newton Golf
Given the investment horizon of 90 days Envirotech Vehicles is expected to under-perform the Newton Golf. But the stock apears to be less risky and, when comparing its historical volatility, Envirotech Vehicles is 2.69 times less risky than Newton Golf. The stock trades about -0.04 of its potential returns per unit of risk. The Newton Golf is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 132.00 in Newton Golf on September 12, 2025 and sell it today you would earn a total of 34.00 from holding Newton Golf or generate 25.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Envirotech Vehicles vs. Newton Golf
Performance |
| Timeline |
| Envirotech Vehicles |
| Newton Golf |
Envirotech Vehicles and Newton Golf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Envirotech Vehicles and Newton Golf
The main advantage of trading using opposite Envirotech Vehicles and Newton Golf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Envirotech Vehicles position performs unexpectedly, Newton Golf 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 Newton Golf will offset losses from the drop in Newton Golf's long position.| Envirotech Vehicles vs. Quantumscape Corp | Envirotech Vehicles vs. Autoliv | Envirotech Vehicles vs. Hasbro Inc | Envirotech Vehicles vs. BorgWarner |
| Newton Golf vs. American Rebel Holdings | Newton Golf vs. Kaixin Auto Holdings | Newton Golf vs. ECD Automotive Design | Newton Golf vs. INNEOVA Holdings Limited |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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