Correlation Between Everi Holdings and Canterbury Park

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

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

Diversification Opportunities for Everi Holdings and Canterbury Park

0.84

Correlation Coefficient

Everi Holdings  Canterbury Park

Very poor diversification

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

Pair Corralation between Everi Holdings and Canterbury Park

Given the investment horizon of 90 days Everi Holdings is expected to generate 6.22 times less return on investment than Canterbury Park. But when comparing it to its historical volatility, Everi Holdings is 17.05 times less risky than Canterbury Park. It trades about 0.24 of its potential returns per unit of risk. Canterbury Park Holding is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,930  in Canterbury Park Holding on September 30, 2024 and sell it today you would earn a total of  260.00  from holding Canterbury Park Holding or generate 13.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	92.19%
Values	Daily Returns

Everi Holdings  vs.  Canterbury Park Holding

Everi Holdings

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Everi Holdings are ranked lower than 18 (%) 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.

Canterbury Park Holding

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Canterbury Park Holding are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical indicators, Canterbury Park exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Everi Holdings and Canterbury Park

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

The idea behind Everi Holdings and Canterbury Park Holding 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.