Correlation Between Entain Plc and Las Vegas
Can any of the company-specific risk be diversified away by investing in both Entain Plc and Las Vegas 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 Entain Plc and Las Vegas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entain Plc and Las Vegas Sands, you can compare the effects of market volatilities on Entain Plc and Las Vegas 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 Entain Plc with a short position of Las Vegas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entain Plc and Las Vegas.
Diversification Opportunities for Entain Plc and Las Vegas
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Entain and Las is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Entain Plc and Las Vegas Sands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Las Vegas Sands and Entain Plc 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 Entain Plc are associated (or correlated) with Las Vegas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Las Vegas Sands has no effect on the direction of Entain Plc i.e., Entain Plc and Las Vegas go up and down completely randomly.
Pair Corralation between Entain Plc and Las Vegas
Assuming the 90 days horizon Entain Plc is expected to generate 1.88 times more return on investment than Las Vegas. However, Entain Plc is 1.88 times more volatile than Las Vegas Sands. It trades about -0.13 of its potential returns per unit of risk. Las Vegas Sands is currently generating about -0.44 per unit of risk. If you would invest 859.00 in Entain Plc on October 20, 2024 and sell it today you would lose (69.00) from holding Entain Plc or give up 8.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entain Plc vs. Las Vegas Sands
Performance |
| Timeline |
| Entain Plc |
| Las Vegas Sands |
Entain Plc and Las Vegas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entain Plc and Las Vegas
The main advantage of trading using opposite Entain Plc and Las Vegas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entain Plc position performs unexpectedly, Las Vegas 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 Las Vegas will offset losses from the drop in Las Vegas' long position.| Entain Plc vs. Las Vegas Sands | Entain Plc vs. Galaxy Entertainment Group | Entain Plc vs. Sands China | Entain Plc vs. MGM Resorts International |
| Las Vegas vs. Galaxy Entertainment Group | Las Vegas vs. Sands China | Las Vegas vs. MGM Resorts International | Las Vegas vs. Wynn Resorts Limited |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |