Correlation Between PlayAGS and NeogamesSA

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Can any of the company-specific risk be diversified away by investing in both PlayAGS and NeogamesSA 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 NeogamesSA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PlayAGS and NeogamesSA, you can compare the effects of market volatilities on PlayAGS and NeogamesSA 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 NeogamesSA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PlayAGS and NeogamesSA.

Diversification Opportunities for PlayAGS and NeogamesSA

0.55
  Correlation Coefficient

Very weak diversification

The 3 months correlation between PlayAGS and NeogamesSA is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding PlayAGS and NeogamesSA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NeogamesSA 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 NeogamesSA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NeogamesSA has no effect on the direction of PlayAGS i.e., PlayAGS and NeogamesSA go up and down completely randomly.

Pair Corralation between PlayAGS and NeogamesSA

If you would invest  872.00  in PlayAGS on February 24, 2024 and sell it today you would earn a total of  286.00  from holding PlayAGS or generate 32.8% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy13.64%
ValuesDaily Returns

PlayAGS  vs.  NeogamesSA

 Performance 
       Timeline  
PlayAGS 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in PlayAGS are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal technical and fundamental indicators, PlayAGS unveiled solid returns over the last few months and may actually be approaching a breakup point.
NeogamesSA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Solid
Over the last 90 days NeogamesSA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, NeogamesSA is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

PlayAGS and NeogamesSA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PlayAGS and NeogamesSA

The main advantage of trading using opposite PlayAGS and NeogamesSA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PlayAGS position performs unexpectedly, NeogamesSA 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 NeogamesSA will offset losses from the drop in NeogamesSA's long position.
The idea behind PlayAGS and NeogamesSA 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.
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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