Correlation Between Gan and Everi Holdings

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

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

Diversification Opportunities for Gan and Everi Holdings

0.85

Correlation Coefficient

Gan  Everi Holdings

Very poor diversification

The 3 months correlation between Gan and Everi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Gan and Everi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everi Holdings and Gan 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 Gan 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 Gan i.e., Gan and Everi Holdings go up and down completely randomly.

Pair Corralation between Gan and Everi Holdings

Considering the 90-day investment horizon Gan is expected to generate 0.67 times more return on investment than Everi Holdings. However, Gan is 1.5 times less risky than Everi Holdings. It trades about -0.04 of its potential returns per unit of risk. Everi Holdings is currently generating about -0.08 per unit of risk. If you would invest  125.00  in Gan on January 25, 2024 and sell it today you would lose (2.00) from holding Gan or give up 1.6% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Gan  vs.  Everi Holdings

Gan

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gan has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in May 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

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.

Pair Trading with Gan and Everi Holdings

The main advantage of trading using opposite Gan and Everi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan 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.

The idea behind Gan and Everi Holdings 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.