Correlation Between Everi Holdings and Elys Game

Can any of the company-specific risk be diversified away by investing in both Everi Holdings and Elys Game 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 Everi Holdings and Elys Game into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Everi Holdings and Elys Game Technology, you can compare the effects of market volatilities on Everi Holdings and Elys Game 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 Everi Holdings with a short position of Elys Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everi Holdings and Elys Game.

Diversification Opportunities for Everi Holdings and Elys Game

0.23

Correlation Coefficient

Everi Holdings  Elys Game

Modest diversification

The 3 months correlation between Everi and Elys is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Elys Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elys Game Technology and Everi Holdings 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 Everi Holdings are associated (or correlated) with Elys Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elys Game Technology has no effect on the direction of Everi Holdings i.e., Everi Holdings and Elys Game go up and down completely randomly.

Pair Corralation between Everi Holdings and Elys Game

If you would invest  15.00  in Elys Game Technology on January 24, 2024 and sell it today you would earn a total of  0.00  from holding Elys Game Technology or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

Everi Holdings  vs.  Elys Game Technology

Everi Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Everi Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in May 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Elys Game Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Elys Game Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Elys Game is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Everi Holdings and Elys Game

The main advantage of trading using opposite Everi Holdings and Elys Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everi Holdings position performs unexpectedly, Elys Game 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 Elys Game will offset losses from the drop in Elys Game's long position.

The idea behind Everi Holdings and Elys Game Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Anywhere module to track or share privately all of your investments from the convenience of any device.