Correlation Between Gambling and PlayAGS

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

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

Diversification Opportunities for Gambling and PlayAGS

-0.01

Correlation Coefficient

Gambling  PlayAGS

Good diversification

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

Pair Corralation between Gambling and PlayAGS

Given the investment horizon of 90 days Gambling Group is expected to under-perform the PlayAGS. In addition to that, Gambling is 9.38 times more volatile than PlayAGS. It trades about -0.05 of its total potential returns per unit of risk. PlayAGS is currently generating about 0.27 per unit of volatility. 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

Gambling Group  vs.  PlayAGS

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.

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.

Pair Trading with Gambling and PlayAGS

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

The idea behind Gambling Group and PlayAGS 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.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.