Correlation Between Evolution Gaming and Everi Holdings
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming and Everi Holdings 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 Everi Holdings 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 Everi Holdings, you can compare the effects of market volatilities on Evolution Gaming and Everi Holdings 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 Everi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and Everi Holdings.
Diversification Opportunities for Evolution Gaming and Everi Holdings
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evolution and Everi is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and Everi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everi Holdings 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 Everi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everi Holdings has no effect on the direction of Evolution Gaming i.e., Evolution Gaming and Everi Holdings go up and down completely randomly.
Pair Corralation between Evolution Gaming and Everi Holdings
Assuming the 90 days horizon Evolution Gaming Group is expected to under-perform the Everi Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, Evolution Gaming Group is 1.4 times less risky than Everi Holdings. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Everi Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,543 in Everi Holdings on September 3, 2024 and sell it today you would lose (196.00) from holding Everi Holdings or give up 12.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Gaming Group vs. Everi Holdings
Performance |
| Timeline |
| Evolution Gaming |
| Everi Holdings |
Evolution Gaming and Everi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Gaming and Everi Holdings
The main advantage of trading using opposite Evolution Gaming and Everi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming position performs unexpectedly, Everi Holdings 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 Everi Holdings will offset losses from the drop in Everi Holdings' long position.| Evolution Gaming vs. Everi Holdings | Evolution Gaming vs. Intema Solutions | Evolution Gaming vs. 888 Holdings | Evolution Gaming vs. Real Luck Group |
| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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