Correlation Between EVgo Equity and MillerKnoll

Can any of the company-specific risk be diversified away by investing in both EVgo Equity and MillerKnoll 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 MillerKnoll 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 MillerKnoll, you can compare the effects of market volatilities on EVgo Equity and MillerKnoll 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 MillerKnoll. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVgo Equity and MillerKnoll.

Diversification Opportunities for EVgo Equity and MillerKnoll

-0.65

Correlation Coefficient

EVgo Equity  MillerKnoll

Excellent diversification

The 3 months correlation between EVgo and MillerKnoll is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding EVgo Equity Warrants and MillerKnoll in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MillerKnoll 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 MillerKnoll. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MillerKnoll has no effect on the direction of EVgo Equity i.e., EVgo Equity and MillerKnoll go up and down completely randomly.

Pair Corralation between EVgo Equity and MillerKnoll

Assuming the 90 days horizon EVgo Equity Warrants is expected to generate 3.18 times more return on investment than MillerKnoll. However, EVgo Equity is 3.18 times more volatile than MillerKnoll. It trades about 0.04 of its potential returns per unit of risk. MillerKnoll is currently generating about 0.08 per unit of risk. If you would invest  18.00  in EVgo Equity Warrants on May 4, 2025 and sell it today you would earn a total of  0.00  from holding EVgo Equity Warrants or generate 0.0% return on investment over 90 days.

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

EVgo Equity Warrants  vs.  MillerKnoll

EVgo Equity Warrants

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in EVgo Equity Warrants are ranked lower than 2 (%) 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.

MillerKnoll

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MillerKnoll are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward-looking signals, MillerKnoll displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EVgo Equity and MillerKnoll

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

The idea behind EVgo Equity Warrants and MillerKnoll 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.