Correlation Between Las Vegas and Scottish American
Can any of the company-specific risk be diversified away by investing in both Las Vegas and Scottish American 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 Las Vegas and Scottish American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Las Vegas Sands and Scottish American Investment, you can compare the effects of market volatilities on Las Vegas and Scottish American 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 Las Vegas with a short position of Scottish American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Las Vegas and Scottish American.
Diversification Opportunities for Las Vegas and Scottish American
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Las and Scottish is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Las Vegas Sands and Scottish American Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scottish American and Las Vegas 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 Las Vegas Sands are associated (or correlated) with Scottish American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scottish American has no effect on the direction of Las Vegas i.e., Las Vegas and Scottish American go up and down completely randomly.
Pair Corralation between Las Vegas and Scottish American
Assuming the 90 days trading horizon Las Vegas Sands is expected to generate 2.08 times more return on investment than Scottish American. However, Las Vegas is 2.08 times more volatile than Scottish American Investment. It trades about 0.01 of its potential returns per unit of risk. Scottish American Investment is currently generating about 0.02 per unit of risk. If you would invest 5,229 in Las Vegas Sands on September 3, 2024 and sell it today you would earn a total of 66.00 from holding Las Vegas Sands or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.96% |
| Values | Daily Returns |
Las Vegas Sands vs. Scottish American Investment
Performance |
| Timeline |
| Las Vegas Sands |
| Scottish American |
Las Vegas and Scottish American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Las Vegas and Scottish American
The main advantage of trading using opposite Las Vegas and Scottish American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Las Vegas position performs unexpectedly, Scottish American 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 Scottish American will offset losses from the drop in Scottish American's long position.| Las Vegas vs. Bellevue Healthcare Trust | Las Vegas vs. Spire Healthcare Group | Las Vegas vs. Veolia Environnement VE | Las Vegas vs. Optima Health plc |
| Scottish American vs. Beeks Trading | Scottish American vs. Arrow Electronics | Scottish American vs. The Investment | Scottish American vs. Kinnevik Investment AB |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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