Correlation Between Fox Factory and PlayAGS
Can any of the company-specific risk be diversified away by investing in both Fox Factory 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 Fox Factory and PlayAGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fox Factory Holding and PlayAGS, you can compare the effects of market volatilities on Fox Factory 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 Fox Factory with a short position of PlayAGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fox Factory and PlayAGS.
Diversification Opportunities for Fox Factory and PlayAGS
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fox and PlayAGS is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Fox Factory Holding and PlayAGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PlayAGS and Fox Factory 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 Fox Factory 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 Fox Factory i.e., Fox Factory and PlayAGS go up and down completely randomly.
Pair Corralation between Fox Factory and PlayAGS
Given the investment horizon of 90 days Fox Factory Holding is expected to under-perform the PlayAGS. In addition to that, Fox Factory is 1.05 times more volatile than PlayAGS. It trades about -0.06 of its total potential returns per unit of risk. PlayAGS is currently generating about 0.07 per unit of volatility. If you would invest 511.00 in PlayAGS on August 27, 2024 and sell it today you would earn a total of 655.00 from holding PlayAGS or generate 128.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fox Factory Holding vs. PlayAGS
Performance |
| Timeline |
| Fox Factory Holding |
| PlayAGS |
Fox Factory and PlayAGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fox Factory and PlayAGS
The main advantage of trading using opposite Fox Factory and PlayAGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fox Factory 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.| Fox Factory vs. Dorman Products | Fox Factory vs. Malibu Boats | Fox Factory vs. Installed Building Products | Fox Factory vs. ExlService Holdings |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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