Correlation Between 888 Holdings and PlayAGS

Can any of the company-specific risk be diversified away by investing in both 888 Holdings 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 888 Holdings and PlayAGS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 888 Holdings and PlayAGS, you can compare the effects of market volatilities on 888 Holdings 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 888 Holdings with a short position of PlayAGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of 888 Holdings and PlayAGS.

Diversification Opportunities for 888 Holdings and PlayAGS

-0.56

Correlation Coefficient

888 Holdings  PlayAGS

Excellent diversification

The 3 months correlation between 888 and PlayAGS is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding 888 Holdings and PlayAGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PlayAGS and 888 Holdings 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 888 Holdings 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 888 Holdings i.e., 888 Holdings and PlayAGS go up and down completely randomly.

Pair Corralation between 888 Holdings and PlayAGS

Assuming the 90 days horizon 888 Holdings is expected to under-perform the PlayAGS. In addition to that, 888 Holdings is 1.32 times more volatile than PlayAGS. It trades about -0.02 of its total potential returns per unit of risk. PlayAGS is currently generating about 0.08 per unit of volatility. If you would invest  768.00  in PlayAGS on September 4, 2024 and sell it today you would earn a total of  392.00  from holding PlayAGS or generate 51.04% return on investment over 90 days.

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

888 Holdings  vs.  PlayAGS

888 Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 888 Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

PlayAGS

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PlayAGS are ranked lower than 14 (%) 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 recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with 888 Holdings and PlayAGS

The main advantage of trading using opposite 888 Holdings and PlayAGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 888 Holdings 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.

The idea behind 888 Holdings and PlayAGS 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 Transaction History module to view history of all your transactions and understand their impact on performance.