Correlation Between Smart Share and Everi Holdings
Can any of the company-specific risk be diversified away by investing in both Smart Share 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 Smart Share and Everi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart Share Global and Everi Holdings, you can compare the effects of market volatilities on Smart Share 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 Smart Share with a short position of Everi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Share and Everi Holdings.
Diversification Opportunities for Smart Share and Everi Holdings
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Smart and Everi is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Smart Share Global and Everi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everi Holdings and Smart Share 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 Smart Share Global 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 Smart Share i.e., Smart Share and Everi Holdings go up and down completely randomly.
Pair Corralation between Smart Share and Everi Holdings
Allowing for the 90-day total investment horizon Smart Share Global is expected to generate 11.57 times more return on investment than Everi Holdings. However, Smart Share is 11.57 times more volatile than Everi Holdings. It trades about 0.34 of its potential returns per unit of risk. Everi Holdings is currently generating about 0.22 per unit of risk. If you would invest 65.00 in Smart Share Global on September 12, 2024 and sell it today you would earn a total of 11.00 from holding Smart Share Global or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smart Share Global vs. Everi Holdings
Performance |
| Timeline |
| Smart Share Global |
| Everi Holdings |
Smart Share and Everi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart Share and Everi Holdings
The main advantage of trading using opposite Smart Share and Everi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart Share 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.| Smart Share vs. Frontdoor | Smart Share vs. Bright Horizons Family | Smart Share vs. Mister Car Wash | Smart Share vs. Carriage Services |
| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |