Correlation Between International Game and PlayAGS
Can any of the company-specific risk be diversified away by investing in both International Game 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 International Game and PlayAGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Game Technology and PlayAGS, you can compare the effects of market volatilities on International Game 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 International Game with a short position of PlayAGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and PlayAGS.
Diversification Opportunities for International Game and PlayAGS
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and PlayAGS is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and PlayAGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PlayAGS and International Game 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 International Game Technology 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 International Game i.e., International Game and PlayAGS go up and down completely randomly.
Pair Corralation between International Game and PlayAGS
Considering the 90-day investment horizon International Game Technology is expected to under-perform the PlayAGS. In addition to that, International Game is 2.36 times more volatile than PlayAGS. It trades about -0.01 of its total potential returns per unit of risk. PlayAGS is currently generating about 0.45 per unit of volatility. If you would invest 1,154 in PlayAGS on November 2, 2024 and sell it today you would earn a total of 45.00 from holding PlayAGS or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Game Technology vs. PlayAGS
Performance |
| Timeline |
| International Game |
| PlayAGS |
International Game and PlayAGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and PlayAGS
The main advantage of trading using opposite International Game and PlayAGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game 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.| International Game vs. Accel Entertainment | International Game vs. PlayAGS | International Game vs. Everi Holdings | International Game vs. Light Wonder |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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