Correlation Between Everi Holdings and Elray Resources
Can any of the company-specific risk be diversified away by investing in both Everi Holdings and Elray Resources 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 Elray Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everi Holdings and Elray Resources, you can compare the effects of market volatilities on Everi Holdings and Elray Resources 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 Elray Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everi Holdings and Elray Resources.
Diversification Opportunities for Everi Holdings and Elray Resources
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Everi and Elray is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Elray Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elray Resources 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 Elray Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elray Resources has no effect on the direction of Everi Holdings i.e., Everi Holdings and Elray Resources go up and down completely randomly.
Pair Corralation between Everi Holdings and Elray Resources
Given the investment horizon of 90 days Everi Holdings is expected to generate 0.29 times more return on investment than Elray Resources. However, Everi Holdings is 3.5 times less risky than Elray Resources. It trades about 0.15 of its potential returns per unit of risk. Elray Resources is currently generating about 0.03 per unit of risk. If you would invest 680.00 in Everi Holdings on August 28, 2024 and sell it today you would earn a total of 663.00 from holding Everi Holdings or generate 97.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Everi Holdings vs. Elray Resources
Performance |
| Timeline |
| Everi Holdings |
| Elray Resources |
Everi Holdings and Elray Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everi Holdings and Elray Resources
The main advantage of trading using opposite Everi Holdings and Elray Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everi Holdings position performs unexpectedly, Elray Resources 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 Elray Resources will offset losses from the drop in Elray Resources' long position.| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
| Elray Resources vs. Real Luck Group | Elray Resources vs. Betmakers Technology Group | Elray Resources vs. Jackpot Digital |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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