Correlation Between Evolution Gaming and Fluent
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming and Fluent 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 Evolution Gaming and Fluent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution Gaming Group and Fluent Inc, you can compare the effects of market volatilities on Evolution Gaming and Fluent 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 Evolution Gaming with a short position of Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and Fluent.
Diversification Opportunities for Evolution Gaming and Fluent
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Evolution and Fluent is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc and Evolution Gaming 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 Evolution Gaming Group are associated (or correlated) with Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Evolution Gaming i.e., Evolution Gaming and Fluent go up and down completely randomly.
Pair Corralation between Evolution Gaming and Fluent
Assuming the 90 days horizon Evolution Gaming Group is expected to under-perform the Fluent. But the pink sheet apears to be less risky and, when comparing its historical volatility, Evolution Gaming Group is 1.96 times less risky than Fluent. The pink sheet trades about -0.11 of its potential returns per unit of risk. The Fluent Inc is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 335.00 in Fluent Inc on September 25, 2024 and sell it today you would lose (67.00) from holding Fluent Inc or give up 20.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Evolution Gaming Group vs. Fluent Inc
Performance |
Timeline |
Evolution Gaming |
Fluent Inc |
Evolution Gaming and Fluent Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Evolution Gaming and Fluent
The main advantage of trading using opposite Evolution Gaming and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.Evolution Gaming vs. Galaxy Gaming | Evolution Gaming vs. Everi Holdings | Evolution Gaming vs. Intema Solutions | Evolution Gaming vs. 888 Holdings |
Fluent vs. CMG Holdings Group | Fluent vs. Beyond Commerce | Fluent vs. Mastermind | Fluent vs. Aquagold International |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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