Correlation Between Avalon Holdings and EVgo Equity

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

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

Diversification Opportunities for Avalon Holdings and EVgo Equity

-0.54

Correlation Coefficient

Avalon Holdings  EVgo Equity

Excellent diversification

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

Pair Corralation between Avalon Holdings and EVgo Equity

Considering the 90-day investment horizon Avalon Holdings is expected to generate 0.22 times more return on investment than EVgo Equity. However, Avalon Holdings is 4.6 times less risky than EVgo Equity. It trades about 0.09 of its potential returns per unit of risk. EVgo Equity Warrants is currently generating about -0.08 per unit of risk. If you would invest  242.00  in Avalon Holdings on May 9, 2025 and sell it today you would earn a total of  17.00  from holding Avalon Holdings or generate 7.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Avalon Holdings  vs.  EVgo Equity Warrants

Avalon Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Avalon Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Avalon Holdings may actually be approaching a critical reversion point that can send shares even higher in September 2025.

EVgo Equity Warrants

Risk-Adjusted Performance

Weakest

Over the last 90 days EVgo Equity Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Avalon Holdings and EVgo Equity

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

The idea behind Avalon Holdings and EVgo Equity Warrants 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.

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 .