Correlation Between Murphy USA and Evgo
Can any of the company-specific risk be diversified away by investing in both Murphy USA 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 Murphy USA and Evgo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Murphy USA and Evgo Inc, you can compare the effects of market volatilities on Murphy USA 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 Murphy USA with a short position of Evgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Murphy USA and Evgo.
Diversification Opportunities for Murphy USA and Evgo
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Murphy and Evgo is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Murphy USA and Evgo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evgo Inc and Murphy USA 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 Murphy USA 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 Murphy USA i.e., Murphy USA and Evgo go up and down completely randomly.
Pair Corralation between Murphy USA and Evgo
Given the investment horizon of 90 days Murphy USA is expected to under-perform the Evgo. But the stock apears to be less risky and, when comparing its historical volatility, Murphy USA is 2.07 times less risky than Evgo. The stock trades about -0.18 of its potential returns per unit of risk. The Evgo Inc is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 277.00 in Evgo Inc on May 5, 2025 and sell it today you would earn a total of 53.00 from holding Evgo Inc or generate 19.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Murphy USA vs. Evgo Inc
Performance |
Timeline |
Murphy USA |
Evgo Inc |
Murphy USA and Evgo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Murphy USA and Evgo
The main advantage of trading using opposite Murphy USA and Evgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Murphy USA 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.Murphy USA vs. Group 1 Automotive | Murphy USA vs. Murphy Oil | Murphy USA vs. LCI Industries | Murphy USA vs. Penske Automotive Group |
Check out your portfolio center.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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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