Correlation Between PlayAGS and Lottery, Common

Can any of the company-specific risk be diversified away by investing in both PlayAGS and Lottery, Common 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 PlayAGS and Lottery, Common into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PlayAGS and Lottery, Common Stock, you can compare the effects of market volatilities on PlayAGS and Lottery, Common 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 PlayAGS with a short position of Lottery, Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of PlayAGS and Lottery, Common.

Diversification Opportunities for PlayAGS and Lottery, Common

-0.86

Correlation Coefficient

PlayAGS  Lottery, Common

Pay attention - limited upside

The 3 months correlation between PlayAGS and Lottery, is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding PlayAGS and Lottery, Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lottery, Common Stock and PlayAGS 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 PlayAGS are associated (or correlated) with Lottery, Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lottery, Common Stock has no effect on the direction of PlayAGS i.e., PlayAGS and Lottery, Common go up and down completely randomly.

Pair Corralation between PlayAGS and Lottery, Common

Considering the 90-day investment horizon PlayAGS is expected to under-perform the Lottery, Common. But the stock apears to be less risky and, when comparing its historical volatility, PlayAGS is 36.5 times less risky than Lottery, Common. The stock trades about -0.02 of its potential returns per unit of risk. The Lottery, Common Stock is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  37.00  in Lottery, Common Stock on September 1, 2024 and sell it today you would lose (2.00) from holding Lottery, Common Stock or give up 5.41% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

PlayAGS  vs.  Lottery, Common Stock

PlayAGS

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PlayAGS are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, PlayAGS is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Lottery, Common Stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lottery, Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with PlayAGS and Lottery, Common

The main advantage of trading using opposite PlayAGS and Lottery, Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PlayAGS position performs unexpectedly, Lottery, Common 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 Lottery, Common will offset losses from the drop in Lottery, Common's long position.

The idea behind PlayAGS and Lottery, Common Stock pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.