Correlation Between EVgo Equity and Evgo

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

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

Diversification Opportunities for EVgo Equity and Evgo

0.67

Correlation Coefficient

EVgo Equity  Evgo

Poor diversification

The 3 months correlation between EVgo and Evgo is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding EVgo Equity Warrants and Evgo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evgo Inc and EVgo Equity 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 EVgo Equity Warrants 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 EVgo Equity i.e., EVgo Equity and Evgo go up and down completely randomly.

Pair Corralation between EVgo Equity and Evgo

Assuming the 90 days horizon EVgo Equity is expected to generate 1.61 times less return on investment than Evgo. In addition to that, EVgo Equity is 1.63 times more volatile than Evgo Inc. It trades about 0.06 of its total potential returns per unit of risk. Evgo Inc is currently generating about 0.15 per unit of volatility. If you would invest  247.00  in Evgo Inc on April 21, 2025 and sell it today you would earn a total of  130.00  from holding Evgo Inc or generate 52.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

EVgo Equity Warrants  vs.  Evgo Inc

EVgo Equity Warrants

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in EVgo Equity Warrants are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, EVgo Equity showed solid returns over the last few months and may actually be approaching a breakup point.

Evgo Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Evgo Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Evgo displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EVgo Equity and Evgo

The main advantage of trading using opposite EVgo Equity and Evgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVgo Equity 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 EVgo Equity Warrants 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.