Correlation Between Everi Holdings and Mullen Automotive
Can any of the company-specific risk be diversified away by investing in both Everi Holdings and Mullen Automotive 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 Mullen Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everi Holdings and Mullen Automotive, you can compare the effects of market volatilities on Everi Holdings and Mullen Automotive 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 Mullen Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everi Holdings and Mullen Automotive.
Diversification Opportunities for Everi Holdings and Mullen Automotive
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Everi and Mullen is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Mullen Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mullen Automotive 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 Mullen Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mullen Automotive has no effect on the direction of Everi Holdings i.e., Everi Holdings and Mullen Automotive go up and down completely randomly.
Pair Corralation between Everi Holdings and Mullen Automotive
Given the investment horizon of 90 days Everi Holdings is expected to generate 0.25 times more return on investment than Mullen Automotive. However, Everi Holdings is 4.02 times less risky than Mullen Automotive. It trades about 0.01 of its potential returns per unit of risk. Mullen Automotive is currently generating about -0.14 per unit of risk. If you would invest 1,470 in Everi Holdings on September 12, 2024 and sell it today you would lose (124.00) from holding Everi Holdings or give up 8.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Everi Holdings vs. Mullen Automotive
Performance |
| Timeline |
| Everi Holdings |
| Mullen Automotive |
Everi Holdings and Mullen Automotive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everi Holdings and Mullen Automotive
The main advantage of trading using opposite Everi Holdings and Mullen Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everi Holdings position performs unexpectedly, Mullen Automotive 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 Mullen Automotive will offset losses from the drop in Mullen Automotive's long position.| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
| Mullen Automotive vs. Hycroft Mining Holding | Mullen Automotive vs. Imperial Petroleum | Mullen Automotive vs. Camber Energy |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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