Correlation Between Good Gaming and Everi Holdings
Can any of the company-specific risk be diversified away by investing in both Good 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 Good 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 Good Gaming and Everi Holdings, you can compare the effects of market volatilities on Good 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 Good Gaming with a short position of Everi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Good Gaming and Everi Holdings.
Diversification Opportunities for Good Gaming and Everi Holdings
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Good and Everi is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Good Gaming and Everi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everi Holdings and Good 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 Good 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 Good Gaming i.e., Good Gaming and Everi Holdings go up and down completely randomly.
Pair Corralation between Good Gaming and Everi Holdings
Given the investment horizon of 90 days Good Gaming is expected to generate 2.63 times more return on investment than Everi Holdings. However, Good Gaming is 2.63 times more volatile than Everi Holdings. It trades about 0.0 of its potential returns per unit of risk. Everi Holdings is currently generating about 0.0 per unit of risk. If you would invest 4.02 in Good Gaming on August 24, 2024 and sell it today you would lose (3.05) from holding Good Gaming or give up 75.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Good Gaming vs. Everi Holdings
Performance |
| Timeline |
| Good Gaming |
| Everi Holdings |
Good Gaming and Everi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Good Gaming and Everi Holdings
The main advantage of trading using opposite Good Gaming and Everi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Good 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.| Good Gaming vs. Real Luck Group | Good Gaming vs. Betmakers Technology Group | Good Gaming vs. Jackpot Digital |
| Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. PlayAGS | Everi Holdings vs. Churchill Downs Incorporated |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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