Correlation Between PlayAGS and Retailing Fund

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

By analyzing existing cross correlation between PlayAGS and Retailing Fund Investor, you can compare the effects of market volatilities on PlayAGS and Retailing Fund 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 Retailing Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of PlayAGS and Retailing Fund.

Diversification Opportunities for PlayAGS and Retailing Fund

0.58

Correlation Coefficient

PlayAGS  Retailing Fund

Very weak diversification

The 3 months correlation between PlayAGS and Retailing is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding PlayAGS and Retailing Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retailing Fund Investor 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 Retailing Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retailing Fund Investor has no effect on the direction of PlayAGS i.e., PlayAGS and Retailing Fund go up and down completely randomly.

Pair Corralation between PlayAGS and Retailing Fund

Considering the 90-day investment horizon PlayAGS is expected to generate 2.02 times less return on investment than Retailing Fund. But when comparing it to its historical volatility, PlayAGS is 4.41 times less risky than Retailing Fund. It trades about 0.29 of its potential returns per unit of risk. Retailing Fund Investor is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  5,247  in Retailing Fund Investor on May 5, 2025 and sell it today you would earn a total of  436.00  from holding Retailing Fund Investor or generate 8.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	63.49%
Values	Daily Returns

PlayAGS  vs.  Retailing Fund Investor

PlayAGS

Risk-Adjusted Performance

Solid

Over the last 90 days PlayAGS has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Retailing Fund Investor

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Retailing Fund Investor are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Retailing Fund may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with PlayAGS and Retailing Fund

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

The idea behind PlayAGS and Retailing Fund Investor 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.