Correlation Between Evolution Gaming and Gentor Resources
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming and Gentor Resources 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 Gentor Resources 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 Gentor Resources, you can compare the effects of market volatilities on Evolution Gaming and Gentor Resources 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 Gentor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and Gentor Resources.
Diversification Opportunities for Evolution Gaming and Gentor Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evolution and Gentor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and Gentor Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentor Resources 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 Gentor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentor Resources has no effect on the direction of Evolution Gaming i.e., Evolution Gaming and Gentor Resources go up and down completely randomly.
Pair Corralation between Evolution Gaming and Gentor Resources
Assuming the 90 days horizon Evolution Gaming Group is expected to generate 0.64 times more return on investment than Gentor Resources. However, Evolution Gaming Group is 1.56 times less risky than Gentor Resources. It trades about -0.02 of its potential returns per unit of risk. Gentor Resources is currently generating about -0.06 per unit of risk. If you would invest 10,157 in Evolution Gaming Group on September 14, 2024 and sell it today you would lose (1,672) from holding Evolution Gaming Group or give up 16.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Gaming Group vs. Gentor Resources
Performance |
| Timeline |
| Evolution Gaming |
| Gentor Resources |
Evolution Gaming and Gentor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Gaming and Gentor Resources
The main advantage of trading using opposite Evolution Gaming and Gentor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming position performs unexpectedly, Gentor Resources 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 Gentor Resources will offset losses from the drop in Gentor Resources' long position.| Evolution Gaming vs. Galaxy Gaming | Evolution Gaming vs. Everi Holdings | Evolution Gaming vs. Intema Solutions | Evolution Gaming vs. 888 Holdings |
| Gentor Resources vs. Merit Medical Systems | Gentor Resources vs. Evolution Gaming Group | Gentor Resources vs. Contagious Gaming | Gentor Resources vs. enVVeno Medical Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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