Correlation Between Nuvei Corp and EPR Properties

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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 Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy64.62%
ValuesDaily Returns

Nuvei Corp  vs.  EPR Properties 5750

 Performance 
       Timeline  
Nuvei Corp 

Risk-Adjusted Performance

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Weak
 
Strong
Good
Over the last 90 days Nuvei Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Nuvei Corp is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
EPR Properties 5750 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days EPR Properties 5750 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Preferred Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

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.
The idea behind Nuvei Corp and EPR Properties 5750 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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