Correlation Between Everi Holdings and FLIR Systems
Can any of the company-specific risk be diversified away by investing in both Everi Holdings and FLIR Systems 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 FLIR Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everi Holdings and FLIR Systems, you can compare the effects of market volatilities on Everi Holdings and FLIR Systems 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 FLIR Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everi Holdings and FLIR Systems.
Diversification Opportunities for Everi Holdings and FLIR Systems
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Everi and FLIR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and FLIR Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLIR Systems 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 FLIR Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLIR Systems has no effect on the direction of Everi Holdings i.e., Everi Holdings and FLIR Systems go up and down completely randomly.
Pair Corralation between Everi Holdings and FLIR Systems
If you would invest (100.00) in FLIR Systems on January 21, 2024 and sell it today you would earn a total of 100.00 from holding FLIR Systems or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Everi Holdings vs. FLIR Systems
Performance |
| Timeline |
| Everi Holdings |
| FLIR Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Everi Holdings and FLIR Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everi Holdings and FLIR Systems
The main advantage of trading using opposite Everi Holdings and FLIR Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everi Holdings position performs unexpectedly, FLIR Systems 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 FLIR Systems will offset losses from the drop in FLIR Systems' long position.| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
| FLIR Systems vs. Artisan Consumer Goods | FLIR Systems vs. Federal Home Loan | FLIR Systems vs. Norfolk Southern | FLIR Systems vs. Willscot Mobile Mini |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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