Correlation Between Evolution Gaming and Markel Corp
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming and Markel Corp 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 Evolution Gaming and Markel Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution Gaming Group and Markel Corp, you can compare the effects of market volatilities on Evolution Gaming and Markel Corp 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 Evolution Gaming with a short position of Markel Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and Markel Corp.
Diversification Opportunities for Evolution Gaming and Markel Corp
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evolution and Markel is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and Markel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markel Corp and Evolution Gaming 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 Evolution Gaming Group are associated (or correlated) with Markel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markel Corp has no effect on the direction of Evolution Gaming i.e., Evolution Gaming and Markel Corp go up and down completely randomly.
Pair Corralation between Evolution Gaming and Markel Corp
Assuming the 90 days trading horizon Evolution Gaming Group is expected to under-perform the Markel Corp. In addition to that, Evolution Gaming is 2.25 times more volatile than Markel Corp. It trades about -0.01 of its total potential returns per unit of risk. Markel Corp is currently generating about 0.25 per unit of volatility. If you would invest 172,113 in Markel Corp on November 3, 2024 and sell it today you would earn a total of 10,666 from holding Markel Corp or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Gaming Group vs. Markel Corp
Performance |
| Timeline |
| Evolution Gaming |
| Markel Corp |
Evolution Gaming and Markel Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Gaming and Markel Corp
The main advantage of trading using opposite Evolution Gaming and Markel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming position performs unexpectedly, Markel Corp 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 Markel Corp will offset losses from the drop in Markel Corp's long position.| Evolution Gaming vs. Cairn Homes PLC | Evolution Gaming vs. Ecclesiastical Insurance Office | Evolution Gaming vs. Pets at Home | Evolution Gaming vs. Gear4music Plc |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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