Correlation Between Everi Holdings and Real Luck

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

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

Diversification Opportunities for Everi Holdings and Real Luck

0.0

Correlation Coefficient

Everi Holdings  Real Luck

Pay attention - limited upside

The 3 months correlation between Everi and Real is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Real Luck Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Real Luck Group 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 Real Luck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Real Luck Group has no effect on the direction of Everi Holdings i.e., Everi Holdings and Real Luck go up and down completely randomly.

Pair Corralation between Everi Holdings and Real Luck

If you would invest  1,349  in Everi Holdings on December 27, 2024 and sell it today you would earn a total of  11.50  from holding Everi Holdings or generate 0.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Everi Holdings  vs.  Real Luck Group

Everi Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Everi Holdings are ranked lower than 5 (%) 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.

Real Luck Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Real Luck Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Real Luck is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Everi Holdings and Real Luck

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

The idea behind Everi Holdings and Real Luck Group 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.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.