Correlation Between Northern Lion and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both Northern Lion 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 Northern Lion and Evolution Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northern Lion Gold and Evolution Gaming Group, you can compare the effects of market volatilities on Northern Lion 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 Northern Lion with a short position of Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern Lion and Evolution Gaming.
Diversification Opportunities for Northern Lion and Evolution Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Northern and Evolution is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Northern Lion Gold and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming and Northern Lion 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 Northern Lion Gold 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 Northern Lion i.e., Northern Lion and Evolution Gaming go up and down completely randomly.
Pair Corralation between Northern Lion and Evolution Gaming
If you would invest 7,768 in Evolution Gaming Group on November 3, 2024 and sell it today you would earn a total of 247.00 from holding Evolution Gaming Group or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern Lion Gold vs. Evolution Gaming Group
Performance |
| Timeline |
| Northern Lion Gold |
| Evolution Gaming |
Northern Lion and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern Lion and Evolution Gaming
The main advantage of trading using opposite Northern Lion and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Lion 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.| Northern Lion vs. Scholastic | Northern Lion vs. Sphere Entertainment Co | Northern Lion vs. Skillful Craftsman Education | Northern Lion vs. Zane Interactive Publishing |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |