Correlation Between Dicks Sporting and EVgo Equity

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

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

Diversification Opportunities for Dicks Sporting and EVgo Equity

-0.49

Correlation Coefficient

Dicks Sporting  EVgo Equity

Very good diversification

The 3 months correlation between Dicks and EVgo is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Dicks Sporting Goods 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 Dicks Sporting 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 Dicks Sporting Goods 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 Dicks Sporting i.e., Dicks Sporting and EVgo Equity go up and down completely randomly.

Pair Corralation between Dicks Sporting and EVgo Equity

Considering the 90-day investment horizon Dicks Sporting Goods is expected to generate 0.22 times more return on investment than EVgo Equity. However, Dicks Sporting Goods is 4.58 times less risky than EVgo Equity. It trades about 0.07 of its potential returns per unit of risk. EVgo Equity Warrants is currently generating about -0.41 per unit of risk. If you would invest  22,448  in Dicks Sporting Goods on October 15, 2024 and sell it today you would earn a total of  534.00  from holding Dicks Sporting Goods or generate 2.38% return on investment over 90 days.

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

Dicks Sporting Goods  vs.  EVgo Equity Warrants

Dicks Sporting Goods

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dicks Sporting Goods are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent forward-looking signals, Dicks Sporting may actually be approaching a critical reversion point that can send shares even higher in February 2025.

EVgo Equity Warrants

Risk-Adjusted Performance

0 of 100

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 February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Dicks Sporting and EVgo Equity

The main advantage of trading using opposite Dicks Sporting and EVgo Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dicks Sporting 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 Dicks Sporting Goods 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.