Correlation Between Evolution Gaming and MCCORMICK

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming and MCCORMICK 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 MCCORMICK 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 MCCORMICK INC 325, you can compare the effects of market volatilities on Evolution Gaming and MCCORMICK 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 MCCORMICK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and MCCORMICK.

Diversification Opportunities for Evolution Gaming and MCCORMICK

0.35
  Correlation Coefficient

Weak diversification

The 3 months correlation between Evolution and MCCORMICK is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and MCCORMICK INC 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCCORMICK INC 325 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 MCCORMICK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCCORMICK INC 325 has no effect on the direction of Evolution Gaming i.e., Evolution Gaming and MCCORMICK go up and down completely randomly.

Pair Corralation between Evolution Gaming and MCCORMICK

Assuming the 90 days horizon Evolution Gaming Group is expected to under-perform the MCCORMICK. In addition to that, Evolution Gaming is 4.74 times more volatile than MCCORMICK INC 325. It trades about -0.02 of its total potential returns per unit of risk. MCCORMICK INC 325 is currently generating about -0.01 per unit of volatility. If you would invest  9,560  in MCCORMICK INC 325 on September 14, 2024 and sell it today you would lose (91.00) from holding MCCORMICK INC 325 or give up 0.95% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy79.1%
ValuesDaily Returns

Evolution Gaming Group  vs.  MCCORMICK INC 325

 Performance 
       Timeline  
Evolution Gaming 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Evolution Gaming Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
MCCORMICK INC 325 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days MCCORMICK INC 325 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, MCCORMICK is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Evolution Gaming and MCCORMICK Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Evolution Gaming and MCCORMICK

The main advantage of trading using opposite Evolution Gaming and MCCORMICK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming position performs unexpectedly, MCCORMICK 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 MCCORMICK will offset losses from the drop in MCCORMICK's long position.
Evolution Gaming vs. Galaxy Gaming
Evolution Gaming vs. Everi Holdings
Evolution Gaming vs. Intema Solutions
Evolution Gaming vs. 888 Holdings
The idea behind Evolution Gaming Group and MCCORMICK INC 325 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
MCCORMICK vs. Playtika Holding Corp
MCCORMICK vs. Evolution Gaming Group
MCCORMICK vs. Kulicke and Soffa
MCCORMICK vs. Jabil Circuit
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Other Complementary Tools

Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY