Correlation Between Everi Holdings and Tillys

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

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

Diversification Opportunities for Everi Holdings and Tillys

-0.03

Correlation Coefficient

Everi Holdings  Tillys

Good diversification

The 3 months correlation between Everi and Tillys is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Tillys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tillys Inc 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 Tillys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tillys Inc has no effect on the direction of Everi Holdings i.e., Everi Holdings and Tillys go up and down completely randomly.

Pair Corralation between Everi Holdings and Tillys

Given the investment horizon of 90 days Everi Holdings is expected to generate 0.05 times more return on investment than Tillys. However, Everi Holdings is 20.35 times less risky than Tillys. It trades about 0.08 of its potential returns per unit of risk. Tillys Inc is currently generating about -0.2 per unit of risk. If you would invest  1,348  in Everi Holdings on December 28, 2024 and sell it today you would earn a total of  13.00  from holding Everi Holdings or generate 0.96% return on investment over 90 days.

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

Everi Holdings  vs.  Tillys Inc

Everi Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Everi Holdings are ranked lower than 6 (%) 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.

Tillys Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tillys Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Everi Holdings and Tillys

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

The idea behind Everi Holdings and Tillys Inc 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.