Correlation Between Evolve Active and Evolve Global

Can any of the company-specific risk be diversified away by investing in both Evolve Active and Evolve Global 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 Evolve Active and Evolve Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Evolve Active Canadian and Evolve Global Healthcare, you can compare the effects of market volatilities on Evolve Active and Evolve Global 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 Evolve Active with a short position of Evolve Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolve Active and Evolve Global.

Diversification Opportunities for Evolve Active and Evolve Global

0.52

Correlation Coefficient

Evolve Active  Evolve Global

Very weak diversification

The 3 months correlation between Evolve and Evolve is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Evolve Active Canadian and Evolve Global Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolve Global Healthcare and Evolve Active 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 Evolve Active Canadian are associated (or correlated) with Evolve Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolve Global Healthcare has no effect on the direction of Evolve Active i.e., Evolve Active and Evolve Global go up and down completely randomly.

Pair Corralation between Evolve Active and Evolve Global

Assuming the 90 days trading horizon Evolve Active Canadian is expected to generate 0.34 times more return on investment than Evolve Global. However, Evolve Active Canadian is 2.93 times less risky than Evolve Global. It trades about 0.37 of its potential returns per unit of risk. Evolve Global Healthcare is currently generating about 0.03 per unit of risk. If you would invest  1,565  in Evolve Active Canadian on April 24, 2025 and sell it today you would earn a total of  130.00  from holding Evolve Active Canadian or generate 8.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Evolve Active Canadian  vs.  Evolve Global Healthcare

Evolve Active Canadian

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Evolve Active Canadian are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Evolve Active may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Evolve Global Healthcare

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Evolve Global Healthcare are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Evolve Global is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Evolve Active and Evolve Global

The main advantage of trading using opposite Evolve Active and Evolve Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolve Active position performs unexpectedly, Evolve Global 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 Evolve Global will offset losses from the drop in Evolve Global's long position.

The idea behind Evolve Active Canadian and Evolve Global Healthcare 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.