Correlation Between Galaxy Gaming and Everi Holdings
Can any of the company-specific risk be diversified away by investing in both Galaxy Gaming and Everi Holdings 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 Galaxy Gaming and Everi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galaxy Gaming and Everi Holdings, you can compare the effects of market volatilities on Galaxy Gaming and Everi Holdings 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 Galaxy Gaming with a short position of Everi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Gaming and Everi Holdings.
Diversification Opportunities for Galaxy Gaming and Everi Holdings
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galaxy and Everi is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Gaming and Everi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everi Holdings and Galaxy 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 Galaxy Gaming are associated (or correlated) with Everi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everi Holdings has no effect on the direction of Galaxy Gaming i.e., Galaxy Gaming and Everi Holdings go up and down completely randomly.
Pair Corralation between Galaxy Gaming and Everi Holdings
Given the investment horizon of 90 days Galaxy Gaming is expected to under-perform the Everi Holdings. In addition to that, Galaxy Gaming is 2.32 times more volatile than Everi Holdings. It trades about -0.13 of its total potential returns per unit of risk. Everi Holdings is currently generating about 0.06 per unit of volatility. If you would invest 1,357 in Everi Holdings on January 14, 2025 and sell it today you would earn a total of 11.00 from holding Everi Holdings or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Galaxy Gaming vs. Everi Holdings
Performance |
| Timeline |
| Galaxy Gaming |
| Everi Holdings |
Galaxy Gaming and Everi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Gaming and Everi Holdings
The main advantage of trading using opposite Galaxy Gaming and Everi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Gaming position performs unexpectedly, Everi Holdings 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 Everi Holdings will offset losses from the drop in Everi Holdings' long position.| Galaxy Gaming vs. Intema Solutions | Galaxy Gaming vs. 888 Holdings | Galaxy Gaming vs. Royal Wins | Galaxy Gaming vs. Real Luck Group |
| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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