Correlation Between PlayAGS and Kambi Group
Can any of the company-specific risk be diversified away by investing in both PlayAGS and Kambi Group 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 Kambi Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PlayAGS and Kambi Group plc, you can compare the effects of market volatilities on PlayAGS and Kambi Group 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 Kambi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PlayAGS and Kambi Group.
Diversification Opportunities for PlayAGS and Kambi Group
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PlayAGS and Kambi is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding PlayAGS and Kambi Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kambi Group plc 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 Kambi Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kambi Group plc has no effect on the direction of PlayAGS i.e., PlayAGS and Kambi Group go up and down completely randomly.
Pair Corralation between PlayAGS and Kambi Group
Considering the 90-day investment horizon PlayAGS is expected to generate 1.04 times more return on investment than Kambi Group. However, PlayAGS is 1.04 times more volatile than Kambi Group plc. It trades about 0.06 of its potential returns per unit of risk. Kambi Group plc is currently generating about -0.03 per unit of risk. If you would invest 646.00 in PlayAGS on November 2, 2024 and sell it today you would earn a total of 553.00 from holding PlayAGS or generate 85.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
PlayAGS vs. Kambi Group plc
Performance |
| Timeline |
| PlayAGS |
| Kambi Group plc |
PlayAGS and Kambi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PlayAGS and Kambi Group
The main advantage of trading using opposite PlayAGS and Kambi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PlayAGS position performs unexpectedly, Kambi Group 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 Kambi Group will offset losses from the drop in Kambi Group's long position.| PlayAGS vs. Light Wonder | PlayAGS vs. Everi Holdings | PlayAGS vs. Inspired Entertainment | PlayAGS vs. International Game Technology |
| Kambi Group vs. Light Wonder | Kambi Group vs. Everi Holdings | Kambi Group vs. PlayAGS | Kambi Group vs. Accel Entertainment |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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