Correlation Between Evolution Gaming and Entegris
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming and Entegris 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 Entegris 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 Entegris, you can compare the effects of market volatilities on Evolution Gaming and Entegris 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 Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and Entegris.
Diversification Opportunities for Evolution Gaming and Entegris
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Evolution and Entegris is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris 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 Entegris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entegris has no effect on the direction of Evolution Gaming i.e., Evolution Gaming and Entegris go up and down completely randomly.
Pair Corralation between Evolution Gaming and Entegris
Assuming the 90 days horizon Evolution Gaming Group is expected to under-perform the Entegris. But the pink sheet apears to be less risky and, when comparing its historical volatility, Evolution Gaming Group is 1.94 times less risky than Entegris. The pink sheet trades about -0.25 of its potential returns per unit of risk. The Entegris is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 10,585 in Entegris on August 29, 2024 and sell it today you would lose (89.00) from holding Entegris or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Gaming Group vs. Entegris
Performance |
| Timeline |
| Evolution Gaming |
| Entegris |
Evolution Gaming and Entegris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Gaming and Entegris
The main advantage of trading using opposite Evolution Gaming and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming position performs unexpectedly, Entegris 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 Entegris will offset losses from the drop in Entegris' long position.| Evolution Gaming vs. Light Wonder | Evolution Gaming vs. Nasdaq Inc | Evolution Gaming vs. Vertiv Holdings Co | Evolution Gaming vs. IONQ Inc |
| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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