Correlation Between NYSE Composite and PlayAGS
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and PlayAGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and PlayAGS, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of PlayAGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and PlayAGS.
Diversification Opportunities for NYSE Composite and PlayAGS
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and PlayAGS is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and PlayAGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PlayAGS and NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and PlayAGS go up and down completely randomly.
Pair Corralation between NYSE Composite and PlayAGS
Assuming the 90 days trading horizon NYSE Composite is expected to generate 3.11 times more return on investment than PlayAGS. However, NYSE Composite is 3.11 times more volatile than PlayAGS. It trades about 0.13 of its potential returns per unit of risk. PlayAGS is currently generating about 0.06 per unit of risk. If you would invest 1,959,424 in NYSE Composite on August 24, 2024 and sell it today you would earn a total of 37,406 from holding NYSE Composite or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. PlayAGS
Performance |
| Timeline |
NYSE Composite and PlayAGS Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
PlayAGS
Pair trading matchups for PlayAGS
Pair Trading with NYSE Composite and PlayAGS
The main advantage of trading using opposite NYSE Composite and PlayAGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |