Correlation Between Evolution Gaming and Tower Semiconductor
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming and Tower Semiconductor 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 Tower Semiconductor 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 Tower Semiconductor, you can compare the effects of market volatilities on Evolution Gaming and Tower Semiconductor 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 Tower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and Tower Semiconductor.
Diversification Opportunities for Evolution Gaming and Tower Semiconductor
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Evolution and Tower is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and Tower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tower Semiconductor 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 Tower Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tower Semiconductor has no effect on the direction of Evolution Gaming i.e., Evolution Gaming and Tower Semiconductor go up and down completely randomly.
Pair Corralation between Evolution Gaming and Tower Semiconductor
Assuming the 90 days horizon Evolution Gaming Group is expected to under-perform the Tower Semiconductor. But the pink sheet apears to be less risky and, when comparing its historical volatility, Evolution Gaming Group is 1.12 times less risky than Tower Semiconductor. The pink sheet trades about -0.07 of its potential returns per unit of risk. The Tower Semiconductor is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,761 in Tower Semiconductor on September 1, 2024 and sell it today you would earn a total of 952.00 from holding Tower Semiconductor or generate 25.31% 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. Tower Semiconductor
Performance |
| Timeline |
| Evolution Gaming |
| Tower Semiconductor |
Evolution Gaming and Tower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Gaming and Tower Semiconductor
The main advantage of trading using opposite Evolution Gaming and Tower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming position performs unexpectedly, Tower Semiconductor 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 Tower Semiconductor will offset losses from the drop in Tower Semiconductor's long position.| Evolution Gaming vs. Galaxy Gaming | Evolution Gaming vs. Everi Holdings | Evolution Gaming vs. Intema Solutions | Evolution Gaming vs. 888 Holdings |
| Tower Semiconductor vs. Nova | Tower Semiconductor vs. AudioCodes | Tower Semiconductor vs. Nice Ltd ADR | Tower Semiconductor vs. Elbit Systems |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |