Correlation Between Evolution Gaming and Acco Brands
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming and Acco Brands 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 Acco Brands 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 Acco Brands, you can compare the effects of market volatilities on Evolution Gaming and Acco Brands 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 Acco Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and Acco Brands.
Diversification Opportunities for Evolution Gaming and Acco Brands
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evolution and Acco is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and Acco Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acco Brands 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 Acco Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acco Brands has no effect on the direction of Evolution Gaming i.e., Evolution Gaming and Acco Brands go up and down completely randomly.
Pair Corralation between Evolution Gaming and Acco Brands
Assuming the 90 days horizon Evolution Gaming Group is expected to under-perform the Acco Brands. But the pink sheet apears to be less risky and, when comparing its historical volatility, Evolution Gaming Group is 1.1 times less risky than Acco Brands. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Acco Brands is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 502.00 in Acco Brands on September 2, 2024 and sell it today you would earn a total of 80.00 from holding Acco Brands or generate 15.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Gaming Group vs. Acco Brands
Performance |
| Timeline |
| Evolution Gaming |
| Acco Brands |
Evolution Gaming and Acco Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Gaming and Acco Brands
The main advantage of trading using opposite Evolution Gaming and Acco Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming position performs unexpectedly, Acco Brands 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 Acco Brands will offset losses from the drop in Acco Brands' long position.| Evolution Gaming vs. Galaxy Gaming | Evolution Gaming vs. Everi Holdings | Evolution Gaming vs. Intema Solutions | Evolution Gaming vs. 888 Holdings |
| Acco Brands vs. HNI Corp | Acco Brands vs. Steelcase | Acco Brands vs. Ennis Inc | Acco Brands vs. Acacia Research |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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