Correlation Between EV Technology and Volcon

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

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

Diversification Opportunities for EV Technology and Volcon

0.0

Correlation Coefficient

EV Technology  Volcon

Pay attention - limited upside

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

Pair Corralation between EV Technology and Volcon

If you would invest  0.41  in EV Technology Group on December 28, 2024 and sell it today you would earn a total of  0.00  from holding EV Technology Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

EV Technology Group  vs.  Volcon Inc

EV Technology Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days EV Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, EV Technology is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Volcon Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Volcon Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with EV Technology and Volcon

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

The idea behind EV Technology Group and Volcon Inc 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..