Correlation Between United Internet and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both United Internet and Evolution Gaming 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 United Internet and Evolution Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Internet AG and Evolution Gaming Group, you can compare the effects of market volatilities on United Internet and Evolution Gaming 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 United Internet with a short position of Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Internet and Evolution Gaming.
Diversification Opportunities for United Internet and Evolution Gaming
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between United and Evolution is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding United Internet AG and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming and United Internet 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 United Internet AG are associated (or correlated) with Evolution Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Gaming has no effect on the direction of United Internet i.e., United Internet and Evolution Gaming go up and down completely randomly.
Pair Corralation between United Internet and Evolution Gaming
Assuming the 90 days trading horizon United Internet AG is expected to under-perform the Evolution Gaming. In addition to that, United Internet is 1.06 times more volatile than Evolution Gaming Group. It trades about -0.09 of its total potential returns per unit of risk. Evolution Gaming Group is currently generating about -0.02 per unit of volatility. If you would invest 101,805 in Evolution Gaming Group on September 12, 2024 and sell it today you would lose (4,045) from holding Evolution Gaming Group or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Internet AG vs. Evolution Gaming Group
Performance |
| Timeline |
| United Internet AG |
| Evolution Gaming |
United Internet and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Internet and Evolution Gaming
The main advantage of trading using opposite United Internet and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Internet position performs unexpectedly, Evolution Gaming 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 Evolution Gaming will offset losses from the drop in Evolution Gaming's long position.| United Internet vs. Samsung Electronics Co | United Internet vs. Samsung Electronics Co | United Internet vs. Hyundai Motor | United Internet vs. Reliance Industries Ltd |
| Evolution Gaming vs. DXC Technology Co | Evolution Gaming vs. American Homes 4 | Evolution Gaming vs. Bloomsbury Publishing Plc | Evolution Gaming vs. PureTech Health plc |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |