Correlation Between Evolution Gaming and FTAI Aviation
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming and FTAI Aviation 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 FTAI Aviation 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 FTAI Aviation Ltd, you can compare the effects of market volatilities on Evolution Gaming and FTAI Aviation 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 FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and FTAI Aviation.
Diversification Opportunities for Evolution Gaming and FTAI Aviation
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evolution and FTAI is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and FTAI Aviation Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Aviation 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 FTAI Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Aviation has no effect on the direction of Evolution Gaming i.e., Evolution Gaming and FTAI Aviation go up and down completely randomly.
Pair Corralation between Evolution Gaming and FTAI Aviation
Assuming the 90 days horizon Evolution Gaming Group is expected to under-perform the FTAI Aviation. In addition to that, Evolution Gaming is 3.14 times more volatile than FTAI Aviation Ltd. It trades about -0.07 of its total potential returns per unit of risk. FTAI Aviation Ltd is currently generating about 0.14 per unit of volatility. If you would invest 2,486 in FTAI Aviation Ltd on September 1, 2024 and sell it today you would earn a total of 302.00 from holding FTAI Aviation Ltd or generate 12.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Gaming Group vs. FTAI Aviation Ltd
Performance |
| Timeline |
| Evolution Gaming |
| FTAI Aviation |
Evolution Gaming and FTAI Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Gaming and FTAI Aviation
The main advantage of trading using opposite Evolution Gaming and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming position performs unexpectedly, FTAI Aviation 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 FTAI Aviation will offset losses from the drop in FTAI Aviation's long position.| Evolution Gaming vs. Galaxy Gaming | Evolution Gaming vs. Everi Holdings | Evolution Gaming vs. Intema Solutions | Evolution Gaming vs. 888 Holdings |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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