Correlation Between Vertu Motors and Evgo

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

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

Diversification Opportunities for Vertu Motors and Evgo

-0.48

Correlation Coefficient

Vertu Motors  Evgo

Very good diversification

The 3 months correlation between Vertu and Evgo is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Vertu Motors Plc and Evgo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evgo Inc and Vertu Motors 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 Vertu Motors Plc 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 Vertu Motors i.e., Vertu Motors and Evgo go up and down completely randomly.

Pair Corralation between Vertu Motors and Evgo

Assuming the 90 days trading horizon Vertu Motors Plc is expected to generate 0.41 times more return on investment than Evgo. However, Vertu Motors Plc is 2.44 times less risky than Evgo. It trades about 0.05 of its potential returns per unit of risk. Evgo Inc is currently generating about -0.13 per unit of risk. If you would invest  5,980  in Vertu Motors Plc on August 24, 2025 and sell it today you would earn a total of  260.00  from holding Vertu Motors Plc or generate 4.35% return on investment over 90 days.

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

Vertu Motors Plc  vs.  Evgo Inc

Vertu Motors Plc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Vertu Motors Plc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Vertu Motors is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

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 weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Vertu Motors and Evgo

The main advantage of trading using opposite Vertu Motors and Evgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vertu Motors 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 Vertu Motors Plc 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.