Correlation Between Everi Holdings and Canterbury Park

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Can any of the company-specific risk be diversified away by investing in both Everi Holdings and Canterbury Park 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 Everi Holdings and Canterbury Park into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everi Holdings and Canterbury Park Holding, you can compare the effects of market volatilities on Everi Holdings and Canterbury Park 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 Everi Holdings with a short position of Canterbury Park. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everi Holdings and Canterbury Park.

Diversification Opportunities for Everi Holdings and Canterbury Park

-0.35
  Correlation Coefficient

Very good diversification

The 3 months correlation between Everi and Canterbury is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and Canterbury Park Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canterbury Park Holding and Everi Holdings 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 Everi Holdings are associated (or correlated) with Canterbury Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canterbury Park Holding has no effect on the direction of Everi Holdings i.e., Everi Holdings and Canterbury Park go up and down completely randomly.

Pair Corralation between Everi Holdings and Canterbury Park

Given the investment horizon of 90 days Everi Holdings is expected to under-perform the Canterbury Park. But the stock apears to be less risky and, when comparing its historical volatility, Everi Holdings is 1.27 times less risky than Canterbury Park. The stock trades about -0.08 of its potential returns per unit of risk. The Canterbury Park Holding is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  2,380  in Canterbury Park Holding on December 29, 2023 and sell it today you would lose (66.00) from holding Canterbury Park Holding or give up 2.77% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Everi Holdings  vs.  Canterbury Park Holding

 Performance 
       Timeline  
Everi Holdings 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Everi Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
Canterbury Park Holding 

Risk-Adjusted Performance

5 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Canterbury Park Holding are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent technical indicators, Canterbury Park exhibited solid returns over the last few months and may actually be approaching a breakup point.

Everi Holdings and Canterbury Park Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Everi Holdings and Canterbury Park

The main advantage of trading using opposite Everi Holdings and Canterbury Park positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everi Holdings position performs unexpectedly, Canterbury Park 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 Canterbury Park will offset losses from the drop in Canterbury Park's long position.
The idea behind Everi Holdings and Canterbury Park Holding 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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