Correlation Between EVgo Equity and Grab Holdings
Can any of the company-specific risk be diversified away by investing in both EVgo Equity and Grab Holdings 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 Equity and Grab Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVgo Equity Warrants and Grab Holdings Limited, you can compare the effects of market volatilities on EVgo Equity and Grab Holdings 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 Equity with a short position of Grab Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVgo Equity and Grab Holdings.
Diversification Opportunities for EVgo Equity and Grab Holdings
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between EVgo and Grab is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding EVgo Equity Warrants and Grab Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grab Holdings Limited and EVgo Equity 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 Equity Warrants are associated (or correlated) with Grab Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grab Holdings Limited has no effect on the direction of EVgo Equity i.e., EVgo Equity and Grab Holdings go up and down completely randomly.
Pair Corralation between EVgo Equity and Grab Holdings
Assuming the 90 days horizon EVgo Equity Warrants is expected to under-perform the Grab Holdings. But the stock apears to be less risky and, when comparing its historical volatility, EVgo Equity Warrants is 1.23 times less risky than Grab Holdings. The stock trades about -0.12 of its potential returns per unit of risk. The Grab Holdings Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 43.00 in Grab Holdings Limited on December 2, 2024 and sell it today you would earn a total of 12.00 from holding Grab Holdings Limited or generate 27.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
EVgo Equity Warrants vs. Grab Holdings Limited
Performance |
Timeline |
EVgo Equity Warrants |
Grab Holdings Limited |
EVgo Equity and Grab Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EVgo Equity and Grab Holdings
The main advantage of trading using opposite EVgo Equity and Grab Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVgo Equity position performs unexpectedly, Grab Holdings 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 Grab Holdings will offset losses from the drop in Grab Holdings' long position.The idea behind EVgo Equity Warrants and Grab Holdings Limited 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.Grab Holdings vs. Grab Holdings | Grab Holdings vs. EVgo Equity Warrants | Grab Holdings vs. Bakkt Holdings Warrant | Grab Holdings vs. Aquagold International |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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