Correlation Between PlayAGS and Gambling

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

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

Diversification Opportunities for PlayAGS and Gambling

-0.01

Correlation Coefficient

PlayAGS  Gambling

Good diversification

The 3 months correlation between PlayAGS and Gambling is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding PlayAGS and Gambling Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gambling Group and PlayAGS 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 PlayAGS are associated (or correlated) with Gambling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gambling Group has no effect on the direction of PlayAGS i.e., PlayAGS and Gambling go up and down completely randomly.

Pair Corralation between PlayAGS and Gambling

Considering the 90-day investment horizon PlayAGS is expected to generate 0.11 times more return on investment than Gambling. However, PlayAGS is 9.38 times less risky than Gambling. It trades about 0.27 of its potential returns per unit of risk. Gambling Group is currently generating about -0.05 per unit of risk. If you would invest  1,150  in PlayAGS on December 29, 2024 and sell it today you would earn a total of  62.00  from holding PlayAGS or generate 5.39% return on investment over 90 days.

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

PlayAGS  vs.  Gambling Group

PlayAGS

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in PlayAGS are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, PlayAGS is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Gambling Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gambling Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's primary indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with PlayAGS and Gambling

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

The idea behind PlayAGS and Gambling Group 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.