Correlation Between PlayAGS and Rush Street
Can any of the company-specific risk be diversified away by investing in both PlayAGS and Rush Street 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 Rush Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PlayAGS and Rush Street Interactive, you can compare the effects of market volatilities on PlayAGS and Rush Street 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 Rush Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of PlayAGS and Rush Street.
Diversification Opportunities for PlayAGS and Rush Street
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PlayAGS and Rush is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding PlayAGS and Rush Street Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rush Street Interactive 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 Rush Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rush Street Interactive has no effect on the direction of PlayAGS i.e., PlayAGS and Rush Street go up and down completely randomly.
Pair Corralation between PlayAGS and Rush Street
Considering the 90-day investment horizon PlayAGS is expected to generate 3.1 times less return on investment than Rush Street. But when comparing it to its historical volatility, PlayAGS is 4.39 times less risky than Rush Street. It trades about 0.33 of its potential returns per unit of risk. Rush Street Interactive is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,367 in Rush Street Interactive on October 21, 2024 and sell it today you would earn a total of 135.00 from holding Rush Street Interactive or generate 9.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PlayAGS vs. Rush Street Interactive
Performance |
| Timeline |
| PlayAGS |
| Rush Street Interactive |
PlayAGS and Rush Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PlayAGS and Rush Street
The main advantage of trading using opposite PlayAGS and Rush Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PlayAGS position performs unexpectedly, Rush Street 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 Rush Street will offset losses from the drop in Rush Street's long position.| PlayAGS vs. Light Wonder | PlayAGS vs. Everi Holdings | PlayAGS vs. Inspired Entertainment | PlayAGS vs. International Game Technology |
| Rush Street vs. Genius Sports | Rush Street vs. Gan | Rush Street vs. Ballys Corp | Rush Street vs. Hims Hers Health |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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