Correlation Between Dicks Sporting and Evolv Technologies
Can any of the company-specific risk be diversified away by investing in both Dicks Sporting and Evolv Technologies 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 Dicks Sporting and Evolv Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dicks Sporting Goods and Evolv Technologies Holdings, you can compare the effects of market volatilities on Dicks Sporting and Evolv Technologies 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 Dicks Sporting with a short position of Evolv Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dicks Sporting and Evolv Technologies.
Diversification Opportunities for Dicks Sporting and Evolv Technologies
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dicks and Evolv is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dicks Sporting Goods and Evolv Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolv Technologies and Dicks Sporting 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 Dicks Sporting Goods are associated (or correlated) with Evolv Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolv Technologies has no effect on the direction of Dicks Sporting i.e., Dicks Sporting and Evolv Technologies go up and down completely randomly.
Pair Corralation between Dicks Sporting and Evolv Technologies
Considering the 90-day investment horizon Dicks Sporting Goods is expected to under-perform the Evolv Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Dicks Sporting Goods is 4.77 times less risky than Evolv Technologies. The stock trades about -0.27 of its potential returns per unit of risk. The Evolv Technologies Holdings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 363.00 in Evolv Technologies Holdings on January 27, 2024 and sell it today you would earn a total of 31.00 from holding Evolv Technologies Holdings or generate 8.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dicks Sporting Goods vs. Evolv Technologies Holdings
Performance |
| Timeline |
| Dicks Sporting Goods |
| Evolv Technologies |
Dicks Sporting and Evolv Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dicks Sporting and Evolv Technologies
The main advantage of trading using opposite Dicks Sporting and Evolv Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicks Sporting position performs unexpectedly, Evolv Technologies 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 Evolv Technologies will offset losses from the drop in Evolv Technologies' long position.| Dicks Sporting vs. Williams Sonoma | Dicks Sporting vs. AutoZone | Dicks Sporting vs. Best Buy Co | Dicks Sporting vs. RH |
| Evolv Technologies vs. First Responder Technologies | Evolv Technologies vs. Knightscope | Evolv Technologies vs. LogicMark | Evolv Technologies vs. Guardforce AI Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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