Correlation Between Evertec and Remark Holdings

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

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

Diversification Opportunities for Evertec and Remark Holdings

0.0

Correlation Coefficient

Evertec  Remark Holdings

Pay attention - limited upside

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

Pair Corralation between Evertec and Remark Holdings

If you would invest  3,598  in Evertec on December 2, 2024 and sell it today you would earn a total of  136.00  from holding Evertec or generate 3.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Evertec  vs.  Remark Holdings

Evertec

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Evertec are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Evertec is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Remark Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Remark Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Remark Holdings is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Evertec and Remark Holdings

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

The idea behind Evertec and Remark 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.