Correlation Between Black Knight and EVO Payments
Can any of the company-specific risk be diversified away by investing in both Black Knight and EVO Payments 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 Black Knight and EVO Payments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Knight and EVO Payments, you can compare the effects of market volatilities on Black Knight and EVO Payments 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 Black Knight with a short position of EVO Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Knight and EVO Payments.
Diversification Opportunities for Black Knight and EVO Payments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Black and EVO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Black Knight and EVO Payments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVO Payments and Black Knight 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 Black Knight are associated (or correlated) with EVO Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVO Payments has no effect on the direction of Black Knight i.e., Black Knight and EVO Payments go up and down completely randomly.
Pair Corralation between Black Knight and EVO Payments
Considering the 90-day investment horizon Black Knight is expected to generate 14.06 times more return on investment than EVO Payments. However, Black Knight is 14.06 times more volatile than EVO Payments. It trades about 0.04 of its potential returns per unit of risk. EVO Payments is currently generating about 0.12 per unit of risk. If you would invest 6,552 in Black Knight on December 19, 2023 and sell it today you would earn a total of 1,024 from holding Black Knight or generate 15.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 53.16% |
Values | Daily Returns |
Black Knight vs. EVO Payments
Performance |
Timeline |
Black Knight |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
EVO Payments |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Black Knight and EVO Payments Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Black Knight and EVO Payments
The main advantage of trading using opposite Black Knight and EVO Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Knight position performs unexpectedly, EVO Payments 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 EVO Payments will offset losses from the drop in EVO Payments' long position.Black Knight vs. Molecular Partners AG | Black Knight vs. Theriva Biologics | Black Knight vs. Canada Goose Holdings | Black Knight vs. Ralph Lauren Corp |
EVO Payments vs. Deluxe | EVO Payments vs. Aegon NV ADR | EVO Payments vs. SEI Investments | EVO Payments vs. Stagwell |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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