Correlation Between Evolution Gaming and Sealed Air
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming and Sealed 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 Sealed 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 Sealed Air, you can compare the effects of market volatilities on Evolution Gaming and Sealed 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 Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and Sealed Air.
Diversification Opportunities for Evolution Gaming and Sealed Air
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evolution and Sealed is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and Sealed Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air 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 Sealed Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sealed Air has no effect on the direction of Evolution Gaming i.e., Evolution Gaming and Sealed Air go up and down completely randomly.
Pair Corralation between Evolution Gaming and Sealed Air
Assuming the 90 days horizon Evolution Gaming Group is expected to under-perform the Sealed Air. But the pink sheet apears to be less risky and, when comparing its historical volatility, Evolution Gaming Group is 1.14 times less risky than Sealed Air. The pink sheet trades about -0.33 of its potential returns per unit of risk. The Sealed Air is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 3,666 in Sealed Air on August 27, 2024 and sell it today you would lose (76.00) from holding Sealed Air or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Gaming Group vs. Sealed Air
Performance |
| Timeline |
| Evolution Gaming |
| Sealed Air |
Evolution Gaming and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Gaming and Sealed Air
The main advantage of trading using opposite Evolution Gaming and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming position performs unexpectedly, Sealed 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 Sealed Air will offset losses from the drop in Sealed Air's long position.| Evolution Gaming vs. Real Luck Group | Evolution Gaming vs. Betmakers Technology Group | Evolution Gaming vs. Jackpot Digital |
| Sealed Air vs. International Paper | Sealed Air vs. Sonoco Products | Sealed Air vs. Reynolds Consumer Products | Sealed Air vs. Ball 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |