Correlation Between Lottery, Warrants and Everi Holdings

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

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

Diversification Opportunities for Lottery, Warrants and Everi Holdings

-0.59

Correlation Coefficient

Lottery, Warrants  Everi Holdings

Excellent diversification

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

Pair Corralation between Lottery, Warrants and Everi Holdings

Assuming the 90 days horizon Lottery, Warrants is expected to generate 68.14 times more return on investment than Everi Holdings. However, Lottery, Warrants is 68.14 times more volatile than Everi Holdings. It trades about 0.01 of its potential returns per unit of risk. Everi Holdings is currently generating about 0.25 per unit of risk. 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

Lottery, Warrants  vs.  Everi Holdings

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.

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.

Pair Trading with Lottery, Warrants and Everi Holdings

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

The idea behind Lottery, Warrants and Everi 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.