Correlation Between Evolution Gaming and Trugolf
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming and Trugolf 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 Trugolf 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 Trugolf, you can compare the effects of market volatilities on Evolution Gaming and Trugolf 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 Trugolf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and Trugolf.
Diversification Opportunities for Evolution Gaming and Trugolf
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Evolution and Trugolf is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and Trugolf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trugolf 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 Trugolf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trugolf has no effect on the direction of Evolution Gaming i.e., Evolution Gaming and Trugolf go up and down completely randomly.
Pair Corralation between Evolution Gaming and Trugolf
Assuming the 90 days horizon Evolution Gaming Group is expected to generate 0.18 times more return on investment than Trugolf. However, Evolution Gaming Group is 5.63 times less risky than Trugolf. It trades about -0.05 of its potential returns per unit of risk. Trugolf is currently generating about -0.04 per unit of risk. If you would invest 8,937 in Evolution Gaming Group on September 13, 2024 and sell it today you would lose (140.00) from holding Evolution Gaming Group or give up 1.57% 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. Trugolf
Performance |
| Timeline |
| Evolution Gaming |
| Trugolf |
Evolution Gaming and Trugolf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Gaming and Trugolf
The main advantage of trading using opposite Evolution Gaming and Trugolf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming position performs unexpectedly, Trugolf 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 Trugolf will offset losses from the drop in Trugolf's long position.| Evolution Gaming vs. Royal Wins | Evolution Gaming vs. Real Luck Group | Evolution Gaming vs. Betmakers Technology Group | Evolution Gaming vs. Jackpot Digital |
| Trugolf vs. Lindblad Expeditions Holdings | Trugolf vs. JD Sports Fashion | Trugolf vs. Evolution Gaming Group | Trugolf vs. Contagious Gaming |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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