Correlation Between Daseke and EVI Industries

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

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

Diversification Opportunities for Daseke and EVI Industries

0.0

Correlation Coefficient

Daseke  EVI Industries

Pay attention - limited upside

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

Pair Corralation between Daseke and EVI Industries

If you would invest  1,718  in EVI Industries on December 27, 2024 and sell it today you would earn a total of  143.00  from holding EVI Industries or generate 8.32% return on investment over 90 days.

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

Daseke Inc  vs.  EVI Industries

Daseke Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Daseke Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward-looking signals, Daseke is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

EVI Industries

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in EVI Industries are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, EVI Industries may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Daseke and EVI Industries

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

The idea behind Daseke Inc and EVI Industries 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.