Correlation Between Everi Holdings and Lear
Can any of the company-specific risk be diversified away by investing in both Everi Holdings and Lear 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 Lear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everi Holdings and Lear Corporation, you can compare the effects of market volatilities on Everi Holdings and Lear 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 Lear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everi Holdings and Lear.
Diversification Opportunities for Everi Holdings and Lear
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Everi and Lear is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Lear Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lear 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 Lear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lear has no effect on the direction of Everi Holdings i.e., Everi Holdings and Lear go up and down completely randomly.
Pair Corralation between Everi Holdings and Lear
Given the investment horizon of 90 days Everi Holdings is expected to generate 0.11 times more return on investment than Lear. However, Everi Holdings is 8.8 times less risky than Lear. It trades about 0.2 of its potential returns per unit of risk. Lear Corporation is currently generating about -0.05 per unit of risk. If you would invest 1,334 in Everi Holdings on August 30, 2024 and sell it today you would earn a total of 12.00 from holding Everi Holdings or generate 0.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Everi Holdings vs. Lear Corp.
Performance |
| Timeline |
| Everi Holdings |
| Lear |
Everi Holdings and Lear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everi Holdings and Lear
The main advantage of trading using opposite Everi Holdings and Lear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everi Holdings position performs unexpectedly, Lear 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 Lear will offset losses from the drop in Lear's long position.| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |