Correlation Between Nuvei Corp and EPR Properties
Can any of the company-specific risk be diversified away by investing in both Nuvei Corp and EPR Properties 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 Nuvei Corp and EPR Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuvei Corp and EPR Properties 5750, you can compare the effects of market volatilities on Nuvei Corp and EPR Properties 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 Nuvei Corp with a short position of EPR Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuvei Corp and EPR Properties.
Diversification Opportunities for Nuvei Corp and EPR Properties
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nuvei and EPR is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Nuvei Corp and EPR Properties 5750 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPR Properties 5750 and Nuvei Corp 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 Nuvei Corp are associated (or correlated) with EPR Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPR Properties 5750 has no effect on the direction of Nuvei Corp i.e., Nuvei Corp and EPR Properties go up and down completely randomly.
Pair Corralation between Nuvei Corp and EPR Properties
Given the investment horizon of 90 days Nuvei Corp is expected to generate 0.25 times more return on investment than EPR Properties. However, Nuvei Corp is 4.02 times less risky than EPR Properties. It trades about 0.2 of its potential returns per unit of risk. EPR Properties 5750 is currently generating about -0.13 per unit of risk. If you would invest 3,331 in Nuvei Corp on September 23, 2024 and sell it today you would earn a total of 68.00 from holding Nuvei Corp or generate 2.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 64.62% |
Values | Daily Returns |
Nuvei Corp vs. EPR Properties 5750
Performance |
Timeline |
Nuvei Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
EPR Properties 5750 |
Nuvei Corp and EPR Properties Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nuvei Corp and EPR Properties
The main advantage of trading using opposite Nuvei Corp and EPR Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuvei Corp position performs unexpectedly, EPR Properties 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 EPR Properties will offset losses from the drop in EPR Properties' long position.Nuvei Corp vs. Robinhood Markets | Nuvei Corp vs. Palantir Technologies Class | Nuvei Corp vs. GigaCloud Technology Class | Nuvei Corp vs. Crowdstrike Holdings |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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