Correlation Between PlayAGS and Soho House
Can any of the company-specific risk be diversified away by investing in both PlayAGS and Soho House 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 Soho House into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PlayAGS and Soho House Co, you can compare the effects of market volatilities on PlayAGS and Soho House 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 Soho House. Check out your portfolio center. Please also check ongoing floating volatility patterns of PlayAGS and Soho House.
Diversification Opportunities for PlayAGS and Soho House
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PlayAGS and Soho is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding PlayAGS and Soho House Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soho House 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 Soho House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soho House has no effect on the direction of PlayAGS i.e., PlayAGS and Soho House go up and down completely randomly.
Pair Corralation between PlayAGS and Soho House
Considering the 90-day investment horizon PlayAGS is expected to generate 0.08 times more return on investment than Soho House. However, PlayAGS is 12.68 times less risky than Soho House. It trades about -0.02 of its potential returns per unit of risk. Soho House Co is currently generating about -0.11 per unit of risk. If you would invest 1,163 in PlayAGS on August 31, 2024 and sell it today you would lose (1.00) from holding PlayAGS or give up 0.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PlayAGS vs. Soho House Co
Performance |
| Timeline |
| PlayAGS |
| Soho House |
PlayAGS and Soho House Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PlayAGS and Soho House
The main advantage of trading using opposite PlayAGS and Soho House positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PlayAGS position performs unexpectedly, Soho House 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 Soho House will offset losses from the drop in Soho House's long position.| PlayAGS vs. Light Wonder | PlayAGS vs. Everi Holdings | PlayAGS vs. Inspired Entertainment | PlayAGS vs. International Game Technology |
| Soho House vs. 51Talk Online Education | Soho House vs. BOS Better Online | Soho House vs. FTAI Aviation Ltd | Soho House vs. Fluent Inc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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