Correlation Between Everi Holdings and Gogoro Equity

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

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

Diversification Opportunities for Everi Holdings and Gogoro Equity

-0.84

Correlation Coefficient

Everi Holdings  Gogoro Equity

Pay attention - limited upside

The 3 months correlation between Everi and Gogoro is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Gogoro Equity Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gogoro Equity Warrant 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 Gogoro Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gogoro Equity Warrant has no effect on the direction of Everi Holdings i.e., Everi Holdings and Gogoro Equity go up and down completely randomly.

Pair Corralation between Everi Holdings and Gogoro Equity

Given the investment horizon of 90 days Everi Holdings is expected to generate 6.27 times less return on investment than Gogoro Equity. But when comparing it to its historical volatility, Everi Holdings is 101.68 times less risky than Gogoro Equity. It trades about 0.28 of its potential returns per unit of risk. Gogoro Equity Warrant is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  5.15  in Gogoro Equity Warrant on September 2, 2024 and sell it today you would lose (3.12) from holding Gogoro Equity Warrant or give up 60.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Everi Holdings  vs.  Gogoro Equity Warrant

Everi Holdings

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Everi Holdings are ranked lower than 22 (%) 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 recent stock price confusion, may contribute to short-horizon losses for the traders.

Gogoro Equity Warrant

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Gogoro Equity Warrant are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Gogoro Equity showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Everi Holdings and Gogoro Equity

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

The idea behind Everi Holdings and Gogoro Equity Warrant 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.