Correlation Between Bridgetown Holdings and EVgo Equity

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

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

Diversification Opportunities for Bridgetown Holdings and EVgo Equity

0.0

Correlation Coefficient

Bridgetown Holdings  EVgo Equity

Pay attention - limited upside

The 3 months correlation between Bridgetown and EVgo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bridgetown Holdings 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 Bridgetown Holdings 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 Bridgetown Holdings 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 Bridgetown Holdings i.e., Bridgetown Holdings and EVgo Equity go up and down completely randomly.

Pair Corralation between Bridgetown Holdings and EVgo Equity

If you would invest (100.00) in Bridgetown Holdings on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Bridgetown Holdings or generate -100.0% return on investment over 90 days.

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

Bridgetown Holdings  vs.  EVgo Equity Warrants

Bridgetown Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bridgetown Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Bridgetown Holdings is not utilizing all of its potentials. The current 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 April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Bridgetown Holdings and EVgo Equity

The main advantage of trading using opposite Bridgetown Holdings and EVgo Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgetown Holdings 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 Bridgetown Holdings 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.