Correlation Between Everi Holdings and Holley
Can any of the company-specific risk be diversified away by investing in both Everi Holdings and Holley 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 Holley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everi Holdings and Holley Inc, you can compare the effects of market volatilities on Everi Holdings and Holley 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 Holley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everi Holdings and Holley.
Diversification Opportunities for Everi Holdings and Holley
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Everi and Holley is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Holley Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holley Inc 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 Holley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holley Inc has no effect on the direction of Everi Holdings i.e., Everi Holdings and Holley go up and down completely randomly.
Pair Corralation between Everi Holdings and Holley
Given the investment horizon of 90 days Everi Holdings is expected to generate 5.83 times less return on investment than Holley. But when comparing it to its historical volatility, Everi Holdings is 13.79 times less risky than Holley. It trades about 0.2 of its potential returns per unit of risk. Holley Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 276.00 in Holley Inc on August 30, 2024 and sell it today you would earn a total of 12.00 from holding Holley Inc or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Everi Holdings vs. Holley Inc
Performance |
| Timeline |
| Everi Holdings |
| Holley Inc |
Everi Holdings and Holley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everi Holdings and Holley
The main advantage of trading using opposite Everi Holdings and Holley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everi Holdings position performs unexpectedly, Holley 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 Holley will offset losses from the drop in Holley's long position.| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
| Holley vs. Dorman Products | Holley vs. Monro Muffler Brake | Holley vs. Standard Motor Products | Holley vs. Stoneridge |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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