Correlation Between Everi Holdings and Booking Holdings
Can any of the company-specific risk be diversified away by investing in both Everi Holdings and Booking 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 Everi Holdings and Booking Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everi Holdings and Booking Holdings, you can compare the effects of market volatilities on Everi Holdings and Booking 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 Everi Holdings with a short position of Booking Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everi Holdings and Booking Holdings.
Diversification Opportunities for Everi Holdings and Booking Holdings
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Everi and Booking is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Booking Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Booking Holdings and Everi 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 Everi Holdings are associated (or correlated) with Booking Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Booking Holdings has no effect on the direction of Everi Holdings i.e., Everi Holdings and Booking Holdings go up and down completely randomly.
Pair Corralation between Everi Holdings and Booking Holdings
Given the investment horizon of 90 days Everi Holdings is expected to generate 12.06 times less return on investment than Booking Holdings. In addition to that, Everi Holdings is 1.8 times more volatile than Booking Holdings. It trades about 0.01 of its total potential returns per unit of risk. Booking Holdings is currently generating about 0.12 per unit of volatility. If you would invest 202,760 in Booking Holdings on August 27, 2024 and sell it today you would earn a total of 314,955 from holding Booking Holdings or generate 155.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Everi Holdings vs. Booking Holdings
Performance |
| Timeline |
| Everi Holdings |
| Booking Holdings |
Everi Holdings and Booking Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everi Holdings and Booking Holdings
The main advantage of trading using opposite Everi Holdings and Booking Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everi Holdings position performs unexpectedly, Booking 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 Booking Holdings will offset losses from the drop in Booking Holdings' long position.| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
| Booking Holdings vs. TripAdvisor | Booking Holdings vs. Airbnb Inc | Booking Holdings vs. Royal Caribbean Cruises | Booking Holdings vs. Norwegian Cruise Line |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |