Correlation Between Smart Share and Evgo

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

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

Diversification Opportunities for Smart Share and Evgo

-0.5

Correlation Coefficient

Smart Share  Evgo

Very good diversification

The 3 months correlation between Smart and Evgo is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Smart Share Global and Evgo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evgo Inc and Smart Share 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 Smart Share Global 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 Smart Share i.e., Smart Share and Evgo go up and down completely randomly.

Pair Corralation between Smart Share and Evgo

Allowing for the 90-day total investment horizon Smart Share Global is expected to generate 0.26 times more return on investment than Evgo. However, Smart Share Global is 3.84 times less risky than Evgo. It trades about 0.14 of its potential returns per unit of risk. Evgo Inc is currently generating about -0.01 per unit of risk. If you would invest  109.00  in Smart Share Global on May 15, 2025 and sell it today you would earn a total of  9.00  from holding Smart Share Global or generate 8.26% return on investment over 90 days.

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

Smart Share Global  vs.  Evgo Inc

Smart Share Global

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Smart Share Global are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very weak primary indicators, Smart Share may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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 Smart Share and Evgo

The main advantage of trading using opposite Smart Share and Evgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart Share 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 Smart Share Global 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.