Correlation Between Evolution Gaming and Armada Acquisition
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming and Armada Acquisition 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 Evolution Gaming and Armada Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution Gaming Group and Armada Acquisition Corp, you can compare the effects of market volatilities on Evolution Gaming and Armada Acquisition 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 Evolution Gaming with a short position of Armada Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and Armada Acquisition.
Diversification Opportunities for Evolution Gaming and Armada Acquisition
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Evolution and Armada is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and Armada Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Acquisition Corp and Evolution Gaming 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 Evolution Gaming Group are associated (or correlated) with Armada Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armada Acquisition Corp has no effect on the direction of Evolution Gaming i.e., Evolution Gaming and Armada Acquisition go up and down completely randomly.
Pair Corralation between Evolution Gaming and Armada Acquisition
Assuming the 90 days horizon Evolution Gaming Group is expected to generate 0.42 times more return on investment than Armada Acquisition. However, Evolution Gaming Group is 2.38 times less risky than Armada Acquisition. It trades about 0.0 of its potential returns per unit of risk. Armada Acquisition Corp is currently generating about -0.04 per unit of risk. If you would invest 10,073 in Evolution Gaming Group on September 3, 2024 and sell it today you would lose (1,318) from holding Evolution Gaming Group or give up 13.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.06% |
| Values | Daily Returns |
Evolution Gaming Group vs. Armada Acquisition Corp
Performance |
| Timeline |
| Evolution Gaming |
| Armada Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Evolution Gaming and Armada Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Gaming and Armada Acquisition
The main advantage of trading using opposite Evolution Gaming and Armada Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming position performs unexpectedly, Armada Acquisition 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 Armada Acquisition will offset losses from the drop in Armada Acquisition's long position.| Evolution Gaming vs. Everi Holdings | Evolution Gaming vs. Intema Solutions | Evolution Gaming vs. 888 Holdings | Evolution Gaming vs. Light Wonder |
| Armada Acquisition vs. Barings BDC | Armada Acquisition vs. Pintec Technology Holdings | Armada Acquisition vs. Zhihu Inc ADR | Armada Acquisition vs. Western Union Co |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |