Correlation Between EzFill Holdings and Workiva

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

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

Diversification Opportunities for EzFill Holdings and Workiva

-0.65

Correlation Coefficient

EzFill Holdings  Workiva

Excellent diversification

The 3 months correlation between EzFill and Workiva is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding EzFill Holdings and Workiva in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workiva and EzFill Holdings 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 EzFill Holdings are associated (or correlated) with Workiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workiva has no effect on the direction of EzFill Holdings i.e., EzFill Holdings and Workiva go up and down completely randomly.

Pair Corralation between EzFill Holdings and Workiva

Given the investment horizon of 90 days EzFill Holdings is expected to under-perform the Workiva. In addition to that, EzFill Holdings is 2.29 times more volatile than Workiva. It trades about -0.08 of its total potential returns per unit of risk. Workiva is currently generating about 0.22 per unit of volatility. If you would invest  7,481  in Workiva on September 3, 2024 and sell it today you would earn a total of  2,244  from holding Workiva or generate 30.0% return on investment over 90 days.

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

EzFill Holdings  vs.  Workiva

EzFill Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EzFill Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Workiva

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Workiva are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain forward-looking signals, Workiva disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EzFill Holdings and Workiva

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

The idea behind EzFill Holdings and Workiva 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.