Correlation Between Everi Holdings and UTime

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

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

Diversification Opportunities for Everi Holdings and UTime

-0.65

Correlation Coefficient

Everi Holdings  UTime

Excellent diversification

The 3 months correlation between Everi and UTime is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and UTime Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTime Limited 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 UTime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTime Limited has no effect on the direction of Everi Holdings i.e., Everi Holdings and UTime go up and down completely randomly.

Pair Corralation between Everi Holdings and UTime

Given the investment horizon of 90 days Everi Holdings is expected to generate 1.24 times less return on investment than UTime. But when comparing it to its historical volatility, Everi Holdings is 3.06 times less risky than UTime. It trades about 0.04 of its potential returns per unit of risk. UTime Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  580.00  in UTime Limited on September 4, 2024 and sell it today you would lose (541.00) from holding UTime Limited or give up 93.28% of portfolio value over 90 days.

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

Everi Holdings  vs.  UTime Limited

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.

UTime Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UTime Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Everi Holdings and UTime

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

The idea behind Everi Holdings and UTime Limited 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.