Correlation Between Minim and Evolv Technologies

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

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

Diversification Opportunities for Minim and Evolv Technologies

0.13

Correlation Coefficient

Minim  Evolv Technologies

Average diversification

The 3 months correlation between Minim and Evolv is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Minim Inc and Evolv Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolv Technologies and Minim 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 Minim Inc 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 Minim i.e., Minim and Evolv Technologies go up and down completely randomly.

Pair Corralation between Minim and Evolv Technologies

Given the investment horizon of 90 days Minim Inc is expected to under-perform the Evolv Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Minim Inc is 1.41 times less risky than Evolv Technologies. The stock trades about -0.26 of its potential returns per unit of risk. The Evolv Technologies Holdings is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  354.00  in Evolv Technologies Holdings on February 21, 2024 and sell it today you would lose (78.00) from holding Evolv Technologies Holdings or give up 22.03% of portfolio value over 90 days.

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

Minim Inc  vs.  Evolv Technologies Holdings

Minim Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Minim Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in June 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Evolv Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Evolv Technologies Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's essential indicators remain fairly stable which may send shares a bit higher in June 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Minim and Evolv Technologies

The main advantage of trading using opposite Minim and Evolv Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minim 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.

The idea behind Minim Inc and Evolv Technologies Holdings 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.