Correlation Between WEBUY GLOBAL and Evgo
Can any of the company-specific risk be diversified away by investing in both WEBUY GLOBAL and Evgo 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 WEBUY GLOBAL and Evgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WEBUY GLOBAL LTD and Evgo Inc, you can compare the effects of market volatilities on WEBUY GLOBAL and Evgo 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 WEBUY GLOBAL with a short position of Evgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEBUY GLOBAL and Evgo.
Diversification Opportunities for WEBUY GLOBAL and Evgo
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WEBUY and Evgo is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding WEBUY GLOBAL LTD and Evgo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evgo Inc and WEBUY GLOBAL 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 WEBUY GLOBAL LTD are associated (or correlated) with Evgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evgo Inc has no effect on the direction of WEBUY GLOBAL i.e., WEBUY GLOBAL and Evgo go up and down completely randomly.
Pair Corralation between WEBUY GLOBAL and Evgo
Given the investment horizon of 90 days WEBUY GLOBAL LTD is expected to under-perform the Evgo. In addition to that, WEBUY GLOBAL is 1.25 times more volatile than Evgo Inc. It trades about -0.37 of its total potential returns per unit of risk. Evgo Inc is currently generating about -0.44 per unit of volatility. If you would invest 241.00 in Evgo Inc on January 29, 2024 and sell it today you would lose (60.00) from holding Evgo Inc or give up 24.9% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
WEBUY GLOBAL LTD vs. Evgo Inc
Performance |
Timeline |
WEBUY GLOBAL LTD |
Evgo Inc |
WEBUY GLOBAL and Evgo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WEBUY GLOBAL and Evgo
The main advantage of trading using opposite WEBUY GLOBAL and Evgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEBUY GLOBAL position performs unexpectedly, Evgo 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 Evgo will offset losses from the drop in Evgo's long position.WEBUY GLOBAL vs. BJs Wholesale Club | WEBUY GLOBAL vs. Dollar General | WEBUY GLOBAL vs. Grocery Outlet Holding | WEBUY GLOBAL vs. Kroger Company |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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