Correlation Between INFICON Holding and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both INFICON 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 INFICON 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 INFICON Holding AG and Evolution Gaming Group, you can compare the effects of market volatilities on INFICON 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 INFICON Holding with a short position of Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFICON Holding and Evolution Gaming.
Diversification Opportunities for INFICON Holding and Evolution Gaming
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between INFICON and Evolution is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding INFICON Holding AG and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming and INFICON 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 INFICON Holding AG 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 INFICON Holding i.e., INFICON Holding and Evolution Gaming go up and down completely randomly.
Pair Corralation between INFICON Holding and Evolution Gaming
Assuming the 90 days horizon INFICON Holding AG is expected to generate 0.81 times more return on investment than Evolution Gaming. However, INFICON Holding AG is 1.24 times less risky than Evolution Gaming. It trades about 0.09 of its potential returns per unit of risk. Evolution Gaming Group is currently generating about -0.07 per unit of risk. If you would invest 105,665 in INFICON Holding AG on September 14, 2024 and sell it today you would earn a total of 20,335 from holding INFICON Holding AG or generate 19.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INFICON Holding AG vs. Evolution Gaming Group
Performance |
| Timeline |
| INFICON Holding AG |
| Evolution Gaming |
INFICON Holding and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INFICON Holding and Evolution Gaming
The main advantage of trading using opposite INFICON Holding and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFICON 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.| INFICON Holding vs. Evolution Gaming Group | INFICON Holding vs. Boyd Gaming | INFICON Holding vs. Corsair Gaming | INFICON Holding vs. Emerson Radio |
| Evolution Gaming vs. Galaxy Gaming | Evolution Gaming vs. Everi Holdings | Evolution Gaming vs. Intema Solutions | Evolution Gaming vs. 888 Holdings |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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