Correlation Between Murphy USA and Evgo

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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 Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Murphy USA  vs.  Evgo Inc

 Performance 
       Timeline  
Murphy USA 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Murphy USA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Evgo Inc 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Evgo Inc are ranked lower than 5 (%) 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.

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.
The idea behind Murphy USA 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.
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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