Correlation Between PlayAGS and Everi Holdings
Can any of the company-specific risk be diversified away by investing in both PlayAGS and Everi Holdings 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 Everi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PlayAGS and Everi Holdings, you can compare the effects of market volatilities on PlayAGS and Everi Holdings 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 Everi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PlayAGS and Everi Holdings.
Diversification Opportunities for PlayAGS and Everi Holdings
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PlayAGS and Everi is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding PlayAGS and Everi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everi 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 Everi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everi Holdings has no effect on the direction of PlayAGS i.e., PlayAGS and Everi Holdings go up and down completely randomly.
Pair Corralation between PlayAGS and Everi Holdings
Considering the 90-day investment horizon PlayAGS is expected to generate 3.94 times more return on investment than Everi Holdings. However, PlayAGS is 3.94 times more volatile than Everi Holdings. It trades about 0.32 of its potential returns per unit of risk. Everi Holdings is currently generating about 0.2 per unit of risk. If you would invest 1,149 in PlayAGS on October 20, 2024 and sell it today you would earn a total of 37.00 from holding PlayAGS or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PlayAGS vs. Everi Holdings
Performance |
| Timeline |
| PlayAGS |
| Everi Holdings |
PlayAGS and Everi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PlayAGS and Everi Holdings
The main advantage of trading using opposite PlayAGS and Everi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PlayAGS position performs unexpectedly, Everi Holdings 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 Everi Holdings will offset losses from the drop in Everi Holdings' long position.| PlayAGS vs. Light Wonder | PlayAGS vs. Everi Holdings | PlayAGS vs. Inspired Entertainment | PlayAGS vs. International Game Technology |
| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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