Correlation Between GENTING SG and ENTAIN PLC
Can any of the company-specific risk be diversified away by investing in both GENTING SG and ENTAIN PLC 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 GENTING SG and ENTAIN PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GENTING SG LTD and ENTAIN PLC UNSPADR1, you can compare the effects of market volatilities on GENTING SG and ENTAIN PLC 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 GENTING SG with a short position of ENTAIN PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENTING SG and ENTAIN PLC.
Diversification Opportunities for GENTING SG and ENTAIN PLC
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GENTING and ENTAIN is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding GENTING SG LTD and ENTAIN PLC UNSPADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTAIN PLC UNSPADR1 and GENTING SG 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 GENTING SG LTD are associated (or correlated) with ENTAIN PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTAIN PLC UNSPADR1 has no effect on the direction of GENTING SG i.e., GENTING SG and ENTAIN PLC go up and down completely randomly.
Pair Corralation between GENTING SG and ENTAIN PLC
Assuming the 90 days horizon GENTING SG LTD is expected to under-perform the ENTAIN PLC. In addition to that, GENTING SG is 1.1 times more volatile than ENTAIN PLC UNSPADR1. It trades about -0.02 of its total potential returns per unit of risk. ENTAIN PLC UNSPADR1 is currently generating about 0.05 per unit of volatility. If you would invest 755.00 in ENTAIN PLC UNSPADR1 on November 2, 2024 and sell it today you would earn a total of 70.00 from holding ENTAIN PLC UNSPADR1 or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GENTING SG LTD vs. ENTAIN PLC UNSPADR1
Performance |
| Timeline |
| GENTING SG LTD |
| ENTAIN PLC UNSPADR1 |
GENTING SG and ENTAIN PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENTING SG and ENTAIN PLC
The main advantage of trading using opposite GENTING SG and ENTAIN PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENTING SG position performs unexpectedly, ENTAIN PLC 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 ENTAIN PLC will offset losses from the drop in ENTAIN PLC's long position.| GENTING SG vs. NORWEGIAN AIR SHUT | GENTING SG vs. CHINA SOUTHN AIR H | GENTING SG vs. Alaska Air Group | GENTING SG vs. Pentair plc |
| ENTAIN PLC vs. Las Vegas Sands | ENTAIN PLC vs. Galaxy Entertainment Group | ENTAIN PLC vs. Sands China | ENTAIN PLC vs. MGM Resorts International |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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