Correlation Between Canterbury Park and PlayAGS
Can any of the company-specific risk be diversified away by investing in both Canterbury Park and PlayAGS 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 Canterbury Park and PlayAGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canterbury Park Holding and PlayAGS, you can compare the effects of market volatilities on Canterbury Park and PlayAGS 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 Canterbury Park with a short position of PlayAGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canterbury Park and PlayAGS.
Diversification Opportunities for Canterbury Park and PlayAGS
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Canterbury and PlayAGS is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Canterbury Park Holding and PlayAGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PlayAGS and Canterbury Park 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 Canterbury Park Holding are associated (or correlated) with PlayAGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PlayAGS has no effect on the direction of Canterbury Park i.e., Canterbury Park and PlayAGS go up and down completely randomly.
Pair Corralation between Canterbury Park and PlayAGS
Given the investment horizon of 90 days Canterbury Park Holding is expected to generate 585.41 times more return on investment than PlayAGS. However, Canterbury Park is 585.41 times more volatile than PlayAGS. It trades about 0.12 of its potential returns per unit of risk. PlayAGS is currently generating about 0.19 per unit of risk. If you would invest 1,974 in Canterbury Park Holding on August 23, 2024 and sell it today you would earn a total of 6.00 from holding Canterbury Park Holding or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 92.19% |
| Values | Daily Returns |
Canterbury Park Holding vs. PlayAGS
Performance |
| Timeline |
| Canterbury Park Holding |
| PlayAGS |
Canterbury Park and PlayAGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canterbury Park and PlayAGS
The main advantage of trading using opposite Canterbury Park and PlayAGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canterbury Park position performs unexpectedly, PlayAGS 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 PlayAGS will offset losses from the drop in PlayAGS's long position.| Canterbury Park vs. Community West Bancshares | Canterbury Park vs. Citizens Community Bancorp | Canterbury Park vs. Bridgford Foods |
| PlayAGS vs. Light Wonder | PlayAGS vs. Everi Holdings | PlayAGS vs. Inspired Entertainment | PlayAGS 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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