Correlation Between E Home and Everi Holdings
Can any of the company-specific risk be diversified away by investing in both E Home and Everi Holdings 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 E Home and Everi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Home Household Service and Everi Holdings, you can compare the effects of market volatilities on E Home and Everi Holdings 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 E Home with a short position of Everi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Home and Everi Holdings.
Diversification Opportunities for E Home and Everi Holdings
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EJH and Everi is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding E Home Household Service and Everi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everi Holdings and E Home 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 E Home Household Service are associated (or correlated) with Everi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everi Holdings has no effect on the direction of E Home i.e., E Home and Everi Holdings go up and down completely randomly.
Pair Corralation between E Home and Everi Holdings
Considering the 90-day investment horizon E Home Household Service is expected to under-perform the Everi Holdings. In addition to that, E Home is 4.0 times more volatile than Everi Holdings. It trades about -0.06 of its total potential returns per unit of risk. Everi Holdings is currently generating about 0.01 per unit of volatility. If you would invest 1,510 in Everi Holdings on August 27, 2024 and sell it today you would lose (166.00) from holding Everi Holdings or give up 10.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Home Household Service vs. Everi Holdings
Performance |
| Timeline |
| E Home Household |
| Everi Holdings |
E Home and Everi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Home and Everi Holdings
The main advantage of trading using opposite E Home and Everi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Home position performs unexpectedly, Everi Holdings 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 Everi Holdings will offset losses from the drop in Everi Holdings' long position.| E Home vs. Smart Share Global | E Home vs. WW International | E Home vs. Frontdoor | E Home vs. Carriage Services |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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