Correlation Between Alliant Energy and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both Alliant Energy 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 Alliant Energy and Evolution Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliant Energy Corp and Evolution Gaming Group, you can compare the effects of market volatilities on Alliant Energy 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 Alliant Energy with a short position of Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliant Energy and Evolution Gaming.
Diversification Opportunities for Alliant Energy and Evolution Gaming
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alliant and Evolution is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Alliant Energy 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 Alliant Energy 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 Alliant Energy 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 Alliant Energy i.e., Alliant Energy and Evolution Gaming go up and down completely randomly.
Pair Corralation between Alliant Energy and Evolution Gaming
Considering the 90-day investment horizon Alliant Energy Corp is expected to generate 0.57 times more return on investment than Evolution Gaming. However, Alliant Energy Corp is 1.77 times less risky than Evolution Gaming. It trades about 0.1 of its potential returns per unit of risk. Evolution Gaming Group is currently generating about -0.05 per unit of risk. If you would invest 4,947 in Alliant Energy Corp on August 25, 2024 and sell it today you would earn a total of 1,385 from holding Alliant Energy Corp or generate 28.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliant Energy Corp vs. Evolution Gaming Group
Performance |
| Timeline |
| Alliant Energy Corp |
| Evolution Gaming |
Alliant Energy and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliant Energy and Evolution Gaming
The main advantage of trading using opposite Alliant Energy and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliant Energy 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.| Alliant Energy vs. Dominion Energy | Alliant Energy vs. Consolidated Edison | Alliant Energy vs. Eversource Energy | Alliant Energy vs. FirstEnergy |
| Evolution Gaming vs. Real Luck Group | Evolution Gaming vs. Betmakers Technology Group | Evolution Gaming vs. Jackpot Digital |
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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