Correlation Between AMCON Distributing and Evgo

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

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

Diversification Opportunities for AMCON Distributing and Evgo

-0.59

Correlation Coefficient

AMCON Distributing  Evgo

Excellent diversification

The 3 months correlation between AMCON and Evgo is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and Evgo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evgo Inc and AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing i.e., AMCON Distributing and Evgo go up and down completely randomly.

Pair Corralation between AMCON Distributing and Evgo

Considering the 90-day investment horizon AMCON Distributing is expected to generate 23.62 times less return on investment than Evgo. But when comparing it to its historical volatility, AMCON Distributing is 1.33 times less risky than Evgo. It trades about 0.0 of its potential returns per unit of risk. Evgo Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  385.00  in Evgo Inc on May 16, 2025 and sell it today you would earn a total of  9.00  from holding Evgo Inc or generate 2.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

AMCON Distributing  vs.  Evgo Inc

AMCON Distributing

Risk-Adjusted Performance

Weakest

Over the last 90 days AMCON Distributing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, AMCON Distributing is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Evgo Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Evgo Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Evgo may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with AMCON Distributing and Evgo

The main advantage of trading using opposite AMCON Distributing and Evgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing 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 AMCON Distributing 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.