Correlation Between Everi Holdings and International Game
Can any of the company-specific risk be diversified away by investing in both Everi Holdings and International Game 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 International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everi Holdings and International Game Technology, you can compare the effects of market volatilities on Everi Holdings and International Game 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 International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everi Holdings and International Game.
Diversification Opportunities for Everi Holdings and International Game
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Everi and International is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Everi Holdings and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Everi Holdings i.e., Everi Holdings and International Game go up and down completely randomly.
Pair Corralation between Everi Holdings and International Game
Given the investment horizon of 90 days Everi Holdings is expected to under-perform the International Game. But the stock apears to be less risky and, when comparing its historical volatility, Everi Holdings is 1.14 times less risky than International Game. The stock trades about -0.05 of its potential returns per unit of risk. The International Game Technology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,024 in International Game Technology on January 20, 2024 and sell it today you would lose (24.00) from holding International Game Technology or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Everi Holdings vs. International Game Technology
Performance |
| Timeline |
| Everi Holdings |
| International Game |
Everi Holdings and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everi Holdings and International Game
The main advantage of trading using opposite Everi Holdings and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everi Holdings position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game's long position.| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
| International Game vs. NeogamesSA | International Game vs. Accel Entertainment | International Game vs. PlayAGS | International Game vs. Everi Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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