Correlation Between ChargePoint Holdings and Evgo

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

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

Diversification Opportunities for ChargePoint Holdings and Evgo

0.49

Correlation Coefficient

ChargePoint Holdings  Evgo

Very weak diversification

The 3 months correlation between ChargePoint and Evgo is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding ChargePoint Holdings and Evgo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evgo Inc and ChargePoint 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 ChargePoint Holdings 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 ChargePoint Holdings i.e., ChargePoint Holdings and Evgo go up and down completely randomly.

Pair Corralation between ChargePoint Holdings and Evgo

Given the investment horizon of 90 days ChargePoint Holdings is expected to under-perform the Evgo. In addition to that, ChargePoint Holdings is 1.46 times more volatile than Evgo Inc. It trades about -0.02 of its total potential returns per unit of risk. Evgo Inc is currently generating about -0.01 per unit of volatility. If you would invest  374.00  in Evgo Inc on May 11, 2025 and sell it today you would lose (28.00) from holding Evgo Inc or give up 7.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

ChargePoint Holdings  vs.  Evgo Inc

ChargePoint Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days ChargePoint Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Evgo Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Evgo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Evgo is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with ChargePoint Holdings and Evgo

The main advantage of trading using opposite ChargePoint Holdings and Evgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChargePoint Holdings 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.

The idea behind ChargePoint Holdings and Evgo Inc 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.