Correlation Between Newton Golf and Envirotech Vehicles

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Can any of the company-specific risk be diversified away by investing in both Newton Golf and Envirotech Vehicles 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 Newton Golf and Envirotech Vehicles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newton Golf and Envirotech Vehicles, you can compare the effects of market volatilities on Newton Golf and Envirotech Vehicles 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 Newton Golf with a short position of Envirotech Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newton Golf and Envirotech Vehicles.

Diversification Opportunities for Newton Golf and Envirotech Vehicles

0.54
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Newton and Envirotech is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Newton Golf and Envirotech Vehicles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Envirotech Vehicles and Newton Golf 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 Newton Golf are associated (or correlated) with Envirotech Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Envirotech Vehicles has no effect on the direction of Newton Golf i.e., Newton Golf and Envirotech Vehicles go up and down completely randomly.

Pair Corralation between Newton Golf and Envirotech Vehicles

Given the investment horizon of 90 days Newton Golf is expected to generate 1.28 times more return on investment than Envirotech Vehicles. However, Newton Golf is 1.28 times more volatile than Envirotech Vehicles. It trades about 0.0 of its potential returns per unit of risk. Envirotech Vehicles is currently generating about -0.21 per unit of risk. If you would invest  193.00  in Newton Golf on September 13, 2025 and sell it today you would lose (27.00) from holding Newton Golf or give up 13.99% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Newton Golf  vs.  Envirotech Vehicles

 Performance 
       Timeline  
Newton Golf 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Newton Golf has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Newton Golf is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
Envirotech Vehicles 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Envirotech Vehicles has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2026. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Newton Golf and Envirotech Vehicles Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Newton Golf and Envirotech Vehicles

The main advantage of trading using opposite Newton Golf and Envirotech Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newton Golf position performs unexpectedly, Envirotech Vehicles 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 Envirotech Vehicles will offset losses from the drop in Envirotech Vehicles' long position.
The idea behind Newton Golf and Envirotech Vehicles 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.
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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