Correlation Between Everi Holdings and Vision Marine

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

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

Diversification Opportunities for Everi Holdings and Vision Marine

-0.69

Correlation Coefficient

Everi Holdings  Vision Marine

Excellent diversification

The 3 months correlation between Everi and Vision is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Vision Marine Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vision Marine Techno 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 Vision Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vision Marine Techno has no effect on the direction of Everi Holdings i.e., Everi Holdings and Vision Marine go up and down completely randomly.

Pair Corralation between Everi Holdings and Vision Marine

Given the investment horizon of 90 days Everi Holdings is expected to generate 0.02 times more return on investment than Vision Marine. However, Everi Holdings is 61.77 times less risky than Vision Marine. It trades about 0.25 of its potential returns per unit of risk. Vision Marine Technologies is currently generating about -0.24 per unit of risk. If you would invest  1,310  in Everi Holdings on September 12, 2024 and sell it today you would earn a total of  36.00  from holding Everi Holdings or generate 2.75% return on investment over 90 days.

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

Everi Holdings  vs.  Vision Marine Technologies

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.

Vision Marine Techno

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vision Marine Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Everi Holdings and Vision Marine

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

The idea behind Everi Holdings and Vision Marine Technologies 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.