Correlation Between AST SpaceMobile and EVgo Equity

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

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

Diversification Opportunities for AST SpaceMobile and EVgo Equity

0.0

Correlation Coefficient

AST SpaceMobile  EVgo Equity

Pay attention - limited upside

The 3 months correlation between AST and EVgo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AST SpaceMobile and EVgo Equity Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVgo Equity Warrants and AST SpaceMobile 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 AST SpaceMobile are associated (or correlated) with EVgo Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVgo Equity Warrants has no effect on the direction of AST SpaceMobile i.e., AST SpaceMobile and EVgo Equity go up and down completely randomly.

Pair Corralation between AST SpaceMobile and EVgo Equity

If you would invest  81.00  in EVgo Equity Warrants on November 27, 2024 and sell it today you would lose (51.00) from holding EVgo Equity Warrants or give up 62.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AST SpaceMobile  vs.  EVgo Equity Warrants

AST SpaceMobile

Risk-Adjusted Performance

Very Weak

Over the last 90 days AST SpaceMobile has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, AST SpaceMobile is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

EVgo Equity Warrants

Risk-Adjusted Performance

Very Weak

Over the last 90 days EVgo Equity Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in March 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with AST SpaceMobile and EVgo Equity

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

The idea behind AST SpaceMobile and EVgo Equity Warrants 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.