Correlation Between Evolution Gaming and Alaska Air
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming and Alaska Air 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 Alaska Air 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 Alaska Air Group, you can compare the effects of market volatilities on Evolution Gaming and Alaska Air 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 Alaska Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and Alaska Air.
Diversification Opportunities for Evolution Gaming and Alaska Air
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evolution and Alaska is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and Alaska Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaska Air Group 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 Alaska Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaska Air Group has no effect on the direction of Evolution Gaming i.e., Evolution Gaming and Alaska Air go up and down completely randomly.
Pair Corralation between Evolution Gaming and Alaska Air
Assuming the 90 days horizon Evolution Gaming Group is expected to under-perform the Alaska Air. But the pink sheet apears to be less risky and, when comparing its historical volatility, Evolution Gaming Group is 1.01 times less risky than Alaska Air. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Alaska Air Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,575 in Alaska Air Group on September 2, 2024 and sell it today you would earn a total of 685.00 from holding Alaska Air Group or generate 14.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Gaming Group vs. Alaska Air Group
Performance |
| Timeline |
| Evolution Gaming |
| Alaska Air Group |
Evolution Gaming and Alaska Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Gaming and Alaska Air
The main advantage of trading using opposite Evolution Gaming and Alaska Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming position performs unexpectedly, Alaska Air 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 Alaska Air will offset losses from the drop in Alaska Air's long position.| Evolution Gaming vs. Galaxy Gaming | Evolution Gaming vs. Everi Holdings | Evolution Gaming vs. Intema Solutions | Evolution Gaming vs. 888 Holdings |
| Alaska Air vs. Canadian Pacific Railway | Alaska Air vs. Werner Enterprises | Alaska Air vs. Canadian National Railway | Alaska Air vs. CSX Corporation |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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