Correlation Between FansUnite Entertainment and PlayAGS
Can any of the company-specific risk be diversified away by investing in both FansUnite Entertainment 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 FansUnite Entertainment and PlayAGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FansUnite Entertainment and PlayAGS, you can compare the effects of market volatilities on FansUnite Entertainment 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 FansUnite Entertainment with a short position of PlayAGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FansUnite Entertainment and PlayAGS.
Diversification Opportunities for FansUnite Entertainment and PlayAGS
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FansUnite and PlayAGS is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding FansUnite Entertainment and PlayAGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PlayAGS and FansUnite Entertainment 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 FansUnite Entertainment 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 FansUnite Entertainment i.e., FansUnite Entertainment and PlayAGS go up and down completely randomly.
Pair Corralation between FansUnite Entertainment and PlayAGS
Assuming the 90 days horizon FansUnite Entertainment is expected to generate 345.44 times more return on investment than PlayAGS. However, FansUnite Entertainment is 345.44 times more volatile than PlayAGS. It trades about 0.35 of its potential returns per unit of risk. PlayAGS is currently generating about -0.31 per unit of risk. If you would invest 0.01 in FansUnite Entertainment on September 12, 2024 and sell it today you would earn a total of 0.03 from holding FansUnite Entertainment or generate 300.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
FansUnite Entertainment vs. PlayAGS
Performance |
| Timeline |
| FansUnite Entertainment |
| PlayAGS |
FansUnite Entertainment and PlayAGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FansUnite Entertainment and PlayAGS
The main advantage of trading using opposite FansUnite Entertainment and PlayAGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FansUnite Entertainment 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.| FansUnite Entertainment vs. Intema Solutions | FansUnite Entertainment vs. 888 Holdings | FansUnite Entertainment vs. Real Luck Group | FansUnite Entertainment vs. Royal Wins |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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