Correlation Between Evgo and PTRA

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

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

Diversification Opportunities for Evgo and PTRA

-0.09

Correlation Coefficient

Evgo  PTRA

Good diversification

The 3 months correlation between Evgo and PTRA is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Evgo Inc and PTRA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTRA and Evgo 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 Evgo Inc are associated (or correlated) with PTRA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTRA has no effect on the direction of Evgo i.e., Evgo and PTRA go up and down completely randomly.

Pair Corralation between Evgo and PTRA

If you would invest  540.00  in Evgo Inc on September 12, 2024 and sell it today you would earn a total of  118.00  from holding Evgo Inc or generate 21.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Evgo Inc  vs.  PTRA

Evgo Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Evgo Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Evgo displayed solid returns over the last few months and may actually be approaching a breakup point.

PTRA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PTRA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, PTRA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Evgo and PTRA

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

The idea behind Evgo Inc and PTRA 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.

Check out your portfolio center.

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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.