Correlation Between Evolution Gaming and Loans4Less

Can any of the company-specific risk be diversified away by investing in both Evolution Gaming and Loans4Less 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 Evolution Gaming and Loans4Less into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Evolution Gaming Group and Loans4LessCom, you can compare the effects of market volatilities on Evolution Gaming and Loans4Less 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 Evolution Gaming with a short position of Loans4Less. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and Loans4Less.

Diversification Opportunities for Evolution Gaming and Loans4Less

-0.51

Correlation Coefficient

Evolution Gaming  Loans4Less

Excellent diversification

The 3 months correlation between Evolution and Loans4Less is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and Loans4LessCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loans4LessCom and Evolution Gaming 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 Evolution Gaming Group are associated (or correlated) with Loans4Less. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loans4LessCom has no effect on the direction of Evolution Gaming i.e., Evolution Gaming and Loans4Less go up and down completely randomly.

Pair Corralation between Evolution Gaming and Loans4Less

Assuming the 90 days horizon Evolution Gaming Group is expected to under-perform the Loans4Less. But the pink sheet apears to be less risky and, when comparing its historical volatility, Evolution Gaming Group is 2.73 times less risky than Loans4Less. The pink sheet trades about -0.25 of its potential returns per unit of risk. The Loans4LessCom is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  5.00  in Loans4LessCom on August 26, 2025 and sell it today you would earn a total of  2.00  from holding Loans4LessCom or generate 40.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Evolution Gaming Group  vs.  Loans4LessCom

Evolution Gaming

Risk-Adjusted Performance

Weakest

Over the last 90 days Evolution Gaming Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Loans4LessCom

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Loans4LessCom are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, Loans4Less unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Evolution Gaming and Loans4Less

The main advantage of trading using opposite Evolution Gaming and Loans4Less positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming position performs unexpectedly, Loans4Less 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 Loans4Less will offset losses from the drop in Loans4Less' long position.

The idea behind Evolution Gaming Group and Loans4LessCom 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.