Correlation Between Esports Entertainment and PlayAGS

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

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

Diversification Opportunities for Esports Entertainment and PlayAGS

0.0

Correlation Coefficient

Esports Entertainment  PlayAGS

Pay attention - limited upside

The 3 months correlation between Esports and PlayAGS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Esports Entertainment Group and PlayAGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PlayAGS and Esports Entertainment 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 Esports Entertainment 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 Esports Entertainment i.e., Esports Entertainment and PlayAGS go up and down completely randomly.

Pair Corralation between Esports Entertainment and PlayAGS

If you would invest  1,199  in PlayAGS on November 28, 2024 and sell it today you would earn a total of  10.00  from holding PlayAGS or generate 0.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Esports Entertainment Group  vs.  PlayAGS

Esports Entertainment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Esports Entertainment Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, Esports Entertainment is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

PlayAGS

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PlayAGS are ranked lower than 14 (%) 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 Esports Entertainment and PlayAGS

The main advantage of trading using opposite Esports Entertainment and PlayAGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esports Entertainment 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 Esports Entertainment 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.