Correlation Between PlayAGS and Atour Lifestyle
Can any of the company-specific risk be diversified away by investing in both PlayAGS and Atour Lifestyle 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 Atour Lifestyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PlayAGS and Atour Lifestyle Holdings, you can compare the effects of market volatilities on PlayAGS and Atour Lifestyle 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 Atour Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of PlayAGS and Atour Lifestyle.
Diversification Opportunities for PlayAGS and Atour Lifestyle
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PlayAGS and Atour is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding PlayAGS and Atour Lifestyle Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atour Lifestyle Holdings 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 Atour Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atour Lifestyle Holdings has no effect on the direction of PlayAGS i.e., PlayAGS and Atour Lifestyle go up and down completely randomly.
Pair Corralation between PlayAGS and Atour Lifestyle
Considering the 90-day investment horizon PlayAGS is expected to generate 7.87 times less return on investment than Atour Lifestyle. But when comparing it to its historical volatility, PlayAGS is 9.29 times less risky than Atour Lifestyle. It trades about 0.18 of its potential returns per unit of risk. Atour Lifestyle Holdings is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,853 in Atour Lifestyle Holdings on November 2, 2024 and sell it today you would earn a total of 967.00 from holding Atour Lifestyle Holdings or generate 52.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PlayAGS vs. Atour Lifestyle Holdings
Performance |
| Timeline |
| PlayAGS |
| Atour Lifestyle Holdings |
PlayAGS and Atour Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PlayAGS and Atour Lifestyle
The main advantage of trading using opposite PlayAGS and Atour Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PlayAGS position performs unexpectedly, Atour Lifestyle 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 Atour Lifestyle will offset losses from the drop in Atour Lifestyle's long position.| PlayAGS vs. Light Wonder | PlayAGS vs. Everi Holdings | PlayAGS vs. Inspired Entertainment | PlayAGS vs. International Game Technology |
| Atour Lifestyle vs. InterContinental Hotels Group | Atour Lifestyle vs. GreenTree Hospitality Group | Atour Lifestyle vs. Hyatt Hotels | Atour Lifestyle vs. Choice Hotels International |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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