Correlation Between Gogoro Equity and Allego

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

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

Diversification Opportunities for Gogoro Equity and Allego

0.0

Correlation Coefficient

Gogoro Equity  Allego

Pay attention - limited upside

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

Pair Corralation between Gogoro Equity and Allego

If you would invest  1.97  in Gogoro Equity Warrant on December 29, 2024 and sell it today you would earn a total of  0.60  from holding Gogoro Equity Warrant or generate 30.46% return on investment over 90 days.

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

Gogoro Equity Warrant  vs.  Allego Inc

Gogoro Equity Warrant

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Gogoro Equity Warrant are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Gogoro Equity showed solid returns over the last few months and may actually be approaching a breakup point.

Allego Inc

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Gogoro Equity and Allego

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

The idea behind Gogoro Equity Warrant and Allego 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.