Correlation Between Evolve Active and Exemplar Growth

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

By analyzing existing cross correlation between Evolve Active Canadian and Exemplar Growth and, you can compare the effects of market volatilities on Evolve Active and Exemplar Growth 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 Evolve Active with a short position of Exemplar Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolve Active and Exemplar Growth.

Diversification Opportunities for Evolve Active and Exemplar Growth

0.41

Correlation Coefficient

Evolve Active  Exemplar Growth

Very weak diversification

The 3 months correlation between Evolve and Exemplar is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Evolve Active Canadian and Exemplar Growth and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exemplar Growth and Evolve Active 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 Evolve Active Canadian are associated (or correlated) with Exemplar Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exemplar Growth has no effect on the direction of Evolve Active i.e., Evolve Active and Exemplar Growth go up and down completely randomly.

Pair Corralation between Evolve Active and Exemplar Growth

Assuming the 90 days trading horizon Evolve Active is expected to generate 3.45 times less return on investment than Exemplar Growth. But when comparing it to its historical volatility, Evolve Active Canadian is 1.39 times less risky than Exemplar Growth. It trades about 0.1 of its potential returns per unit of risk. Exemplar Growth and is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  2,160  in Exemplar Growth and on September 13, 2024 and sell it today you would earn a total of  130.00  from holding Exemplar Growth and or generate 6.02% return on investment over 90 days.

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

Evolve Active Canadian  vs.  Exemplar Growth and

Evolve Active Canadian

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Evolve Active Canadian are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Evolve Active is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Exemplar Growth

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Exemplar Growth and are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Exemplar Growth is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Evolve Active and Exemplar Growth

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

The idea behind Evolve Active Canadian and Exemplar Growth and 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.