Correlation Between Freedom Holding and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both Freedom Holding and Evolution Gaming 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 Freedom Holding and Evolution Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freedom Holding Corp and Evolution Gaming Group, you can compare the effects of market volatilities on Freedom Holding and Evolution Gaming 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 Freedom Holding with a short position of Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Holding and Evolution Gaming.
Diversification Opportunities for Freedom Holding and Evolution Gaming
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Freedom and Evolution is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Holding Corp and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming and Freedom Holding 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 Freedom Holding Corp are associated (or correlated) with Evolution Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Gaming has no effect on the direction of Freedom Holding i.e., Freedom Holding and Evolution Gaming go up and down completely randomly.
Pair Corralation between Freedom Holding and Evolution Gaming
Given the investment horizon of 90 days Freedom Holding Corp is expected to generate 1.14 times more return on investment than Evolution Gaming. However, Freedom Holding is 1.14 times more volatile than Evolution Gaming Group. It trades about 0.07 of its potential returns per unit of risk. Evolution Gaming Group is currently generating about 0.0 per unit of risk. If you would invest 6,148 in Freedom Holding Corp on August 30, 2024 and sell it today you would earn a total of 5,695 from holding Freedom Holding Corp or generate 92.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freedom Holding Corp vs. Evolution Gaming Group
Performance |
| Timeline |
| Freedom Holding Corp |
| Evolution Gaming |
Freedom Holding and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Holding and Evolution Gaming
The main advantage of trading using opposite Freedom Holding and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Holding position performs unexpectedly, Evolution Gaming 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 Evolution Gaming will offset losses from the drop in Evolution Gaming's long position.| Freedom Holding vs. Nomura Holdings ADR | Freedom Holding vs. Scully Royalty | Freedom Holding vs. Oppenheimer Holdings | Freedom Holding vs. Houlihan Lokey |
| Evolution Gaming vs. Light Wonder | Evolution Gaming vs. Nasdaq Inc | Evolution Gaming vs. Vertiv Holdings Co | Evolution Gaming vs. IONQ Inc |
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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