Correlation Between Greek Org and Everi Holdings
Can any of the company-specific risk be diversified away by investing in both Greek Org 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 Greek Org and Everi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greek Org of and Everi Holdings, you can compare the effects of market volatilities on Greek Org 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 Greek Org with a short position of Everi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greek Org and Everi Holdings.
Diversification Opportunities for Greek Org and Everi Holdings
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Greek and Everi is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Greek Org of and Everi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everi Holdings and Greek Org 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 Greek Org of 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 Greek Org i.e., Greek Org and Everi Holdings go up and down completely randomly.
Pair Corralation between Greek Org and Everi Holdings
Assuming the 90 days horizon Greek Org is expected to generate 2.12 times less return on investment than Everi Holdings. But when comparing it to its historical volatility, Greek Org of is 2.58 times less risky than Everi Holdings. It trades about 0.05 of its potential returns per unit of risk. Everi Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,059 in Everi Holdings on September 4, 2024 and sell it today you would earn a total of 287.00 from holding Everi Holdings or generate 27.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greek Org of vs. Everi Holdings
Performance |
| Timeline |
| Greek Org |
| Everi Holdings |
Greek Org and Everi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greek Org and Everi Holdings
The main advantage of trading using opposite Greek Org and Everi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greek Org 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.| Greek Org vs. Intema Solutions | Greek Org vs. 888 Holdings | Greek Org vs. Royal Wins | Greek Org vs. Real Luck Group |
| Everi Holdings vs. Hyatt Hotels | Everi Holdings vs. Smart Share Global | Everi Holdings vs. Sweetgreen | Everi Holdings vs. Wyndham Hotels Resorts |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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