Correlation Between 888 Holdings and Everi Holdings

Can any of the company-specific risk be diversified away by investing in both 888 Holdings 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 888 Holdings and Everi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 888 Holdings and Everi Holdings, you can compare the effects of market volatilities on 888 Holdings 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 888 Holdings with a short position of Everi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 888 Holdings and Everi Holdings.

Diversification Opportunities for 888 Holdings and Everi Holdings

-0.37

Correlation Coefficient

888 Holdings  Everi Holdings

Very good diversification

The 3 months correlation between 888 and Everi is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding 888 Holdings and Everi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everi Holdings and 888 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 888 Holdings 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 888 Holdings i.e., 888 Holdings and Everi Holdings go up and down completely randomly.

Pair Corralation between 888 Holdings and Everi Holdings

Assuming the 90 days horizon 888 Holdings is expected to generate 1.42 times less return on investment than Everi Holdings. In addition to that, 888 Holdings is 24.02 times more volatile than Everi Holdings. It trades about 0.01 of its total potential returns per unit of risk. Everi Holdings is currently generating about 0.26 per unit of volatility. If you would invest  1,334  in Everi Holdings on September 21, 2024 and sell it today you would earn a total of  13.00  from holding Everi Holdings or generate 0.97% return on investment over 90 days.

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

888 Holdings  vs.  Everi Holdings

888 Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in 888 Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable fundamental indicators, 888 Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Everi Holdings

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Everi Holdings are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Everi Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with 888 Holdings and Everi Holdings

The main advantage of trading using opposite 888 Holdings and Everi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 888 Holdings 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 888 Holdings 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.