Correlation Between PlayAGS and Red Rock
Can any of the company-specific risk be diversified away by investing in both PlayAGS and Red Rock 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 Red Rock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PlayAGS and Red Rock Resorts, you can compare the effects of market volatilities on PlayAGS and Red Rock 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 Red Rock. Check out your portfolio center. Please also check ongoing floating volatility patterns of PlayAGS and Red Rock.
Diversification Opportunities for PlayAGS and Red Rock
Excellent diversification
The 3 months correlation between PlayAGS and Red is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding PlayAGS and Red Rock Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Red Rock Resorts 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 Red Rock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Red Rock Resorts has no effect on the direction of PlayAGS i.e., PlayAGS and Red Rock go up and down completely randomly.
Pair Corralation between PlayAGS and Red Rock
Considering the 90-day investment horizon PlayAGS is expected to generate 0.08 times more return on investment than Red Rock. However, PlayAGS is 12.38 times less risky than Red Rock. It trades about 0.04 of its potential returns per unit of risk. Red Rock Resorts is currently generating about -0.12 per unit of risk. If you would invest 1,161 in PlayAGS on August 28, 2024 and sell it today you would earn a total of 2.00 from holding PlayAGS or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PlayAGS vs. Red Rock Resorts
Performance |
| Timeline |
| PlayAGS |
| Red Rock Resorts |
PlayAGS and Red Rock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PlayAGS and Red Rock
The main advantage of trading using opposite PlayAGS and Red Rock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PlayAGS position performs unexpectedly, Red Rock 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 Red Rock will offset losses from the drop in Red Rock's long position.| PlayAGS vs. Light Wonder | PlayAGS vs. Everi Holdings | PlayAGS vs. Inspired Entertainment | PlayAGS vs. International Game Technology |
| Red Rock vs. Golden Entertainment | Red Rock vs. Century Casinos | Red Rock vs. Studio City International | Red Rock vs. Ballys Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |