Correlation Between Iveda Solutions and Evolv Technologies
Can any of the company-specific risk be diversified away by investing in both Iveda Solutions and Evolv Technologies 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 Iveda Solutions and Evolv Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iveda Solutions and Evolv Technologies Holdings, you can compare the effects of market volatilities on Iveda Solutions and Evolv Technologies 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 Iveda Solutions with a short position of Evolv Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iveda Solutions and Evolv Technologies.
Diversification Opportunities for Iveda Solutions and Evolv Technologies
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Iveda and Evolv is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Iveda Solutions and Evolv Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolv Technologies and Iveda Solutions 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 Iveda Solutions are associated (or correlated) with Evolv Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolv Technologies has no effect on the direction of Iveda Solutions i.e., Iveda Solutions and Evolv Technologies go up and down completely randomly.
Pair Corralation between Iveda Solutions and Evolv Technologies
Given the investment horizon of 90 days Iveda Solutions is expected to generate 1.35 times more return on investment than Evolv Technologies. However, Iveda Solutions is 1.35 times more volatile than Evolv Technologies Holdings. It trades about 0.08 of its potential returns per unit of risk. Evolv Technologies Holdings is currently generating about -0.03 per unit of risk. If you would invest 180.00 in Iveda Solutions on December 3, 2024 and sell it today you would earn a total of 21.00 from holding Iveda Solutions or generate 11.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Iveda Solutions vs. Evolv Technologies Holdings
Performance |
Timeline |
Iveda Solutions |
Evolv Technologies |
Iveda Solutions and Evolv Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Iveda Solutions and Evolv Technologies
The main advantage of trading using opposite Iveda Solutions and Evolv Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iveda Solutions position performs unexpectedly, Evolv Technologies 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 Evolv Technologies will offset losses from the drop in Evolv Technologies' long position.Iveda Solutions vs. Guardforce AI Co | Iveda Solutions vs. Bridger Aerospace Group | Iveda Solutions vs. Supercom | Iveda Solutions vs. Guardforce AI Co |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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