Correlation Between Everi Holdings and Lottery, Warrants

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

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

Diversification Opportunities for Everi Holdings and Lottery, Warrants

-0.59

Correlation Coefficient

Everi Holdings  Lottery, Warrants

Excellent diversification

The 3 months correlation between Everi and Lottery, is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Lottery, Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lottery, Warrants 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 Lottery, Warrants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lottery, Warrants has no effect on the direction of Everi Holdings i.e., Everi Holdings and Lottery, Warrants go up and down completely randomly.

Pair Corralation between Everi Holdings and Lottery, Warrants

Given the investment horizon of 90 days Everi Holdings is expected to generate 2.38 times less return on investment than Lottery, Warrants. But when comparing it to its historical volatility, Everi Holdings is 68.14 times less risky than Lottery, Warrants. It trades about 0.25 of its potential returns per unit of risk. Lottery, Warrants is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  0.97  in Lottery, Warrants on September 20, 2024 and sell it today you would lose (0.28) from holding Lottery, Warrants or give up 28.87% of portfolio value over 90 days.

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

Everi Holdings  vs.  Lottery, Warrants

Everi Holdings

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Everi Holdings are ranked lower than 19 (%) 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.

Lottery, Warrants

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lottery, Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, Lottery, Warrants may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Everi Holdings and Lottery, Warrants

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

The idea behind Everi Holdings and Lottery, Warrants 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.