Correlation Between First Responder and Evolv Technologies

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

By analyzing existing cross correlation between First Responder Technologies and Evolv Technologies Holdings, you can compare the effects of market volatilities on First Responder 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 First Responder with a short position of Evolv Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Responder and Evolv Technologies.

Diversification Opportunities for First Responder and Evolv Technologies

0.0

Correlation Coefficient

First Responder  Evolv Technologies

Pay attention - limited upside

The 3 months correlation between First and Evolv is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Responder Technologies and Evolv Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolv Technologies and First Responder 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 First Responder Technologies 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 First Responder i.e., First Responder and Evolv Technologies go up and down completely randomly.

Pair Corralation between First Responder and Evolv Technologies

If you would invest  9.34  in First Responder Technologies on January 30, 2024 and sell it today you would earn a total of  0.00  from holding First Responder Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

First Responder Technologies  vs.  Evolv Technologies Holdings

First Responder Tech

Risk-Adjusted Performance

0 of 100

Very Weak

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

Evolv Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Evolv Technologies Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable essential indicators, Evolv Technologies is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with First Responder and Evolv Technologies

The main advantage of trading using opposite First Responder and Evolv Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Responder 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.

The idea behind First Responder Technologies and Evolv Technologies Holdings 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.