Correlation Between Microsoft and PlayAGS
Can any of the company-specific risk be diversified away by investing in both Microsoft 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 Microsoft and PlayAGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and PlayAGS, you can compare the effects of market volatilities on Microsoft 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 Microsoft with a short position of PlayAGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and PlayAGS.
Diversification Opportunities for Microsoft and PlayAGS
Very weak diversification
The 3 months correlation between Microsoft and PlayAGS is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft and PlayAGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PlayAGS and Microsoft 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 Microsoft 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 Microsoft i.e., Microsoft and PlayAGS go up and down completely randomly.
Pair Corralation between Microsoft and PlayAGS
If you would invest 1,249 in PlayAGS on June 10, 2025 and sell it today you would earn a total of 0.00 from holding PlayAGS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Microsoft vs. PlayAGS
Performance |
| Timeline |
| Microsoft |
| PlayAGS |
Risk-Adjusted Performance
Prime
Weak | Strong |
Microsoft and PlayAGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and PlayAGS
The main advantage of trading using opposite Microsoft and PlayAGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft 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.| Microsoft vs. Palantir Technologies Class | Microsoft vs. Crowdstrike Holdings | Microsoft vs. Oracle | Microsoft vs. CoreWeave, Class A |
| PlayAGS vs. Accel Entertainment | PlayAGS vs. Light Wonder | 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Correlations Find global opportunities by holding instruments from different markets |