Correlation Between ENTAIN PLC and GENTING SG
Can any of the company-specific risk be diversified away by investing in both ENTAIN PLC and GENTING SG 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 GENTING SG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENTAIN PLC UNSPADR1 and GENTING SG LTD, you can compare the effects of market volatilities on ENTAIN PLC and GENTING SG 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 GENTING SG. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENTAIN PLC and GENTING SG.
Diversification Opportunities for ENTAIN PLC and GENTING SG
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ENTAIN and GENTING is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding ENTAIN PLC UNSPADR1 and GENTING SG LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENTING SG LTD 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 UNSPADR1 are associated (or correlated) with GENTING SG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENTING SG LTD has no effect on the direction of ENTAIN PLC i.e., ENTAIN PLC and GENTING SG go up and down completely randomly.
Pair Corralation between ENTAIN PLC and GENTING SG
Assuming the 90 days trading horizon ENTAIN PLC UNSPADR1 is expected to under-perform the GENTING SG. But the stock apears to be less risky and, when comparing its historical volatility, ENTAIN PLC UNSPADR1 is 1.01 times less risky than GENTING SG. The stock trades about -0.25 of its potential returns per unit of risk. The GENTING SG LTD is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 52.00 in GENTING SG LTD on October 20, 2024 and sell it today you would earn a total of 0.00 from holding GENTING SG LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
ENTAIN PLC UNSPADR1 vs. GENTING SG LTD
Performance |
| Timeline |
| ENTAIN PLC UNSPADR1 |
| GENTING SG LTD |
ENTAIN PLC and GENTING SG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENTAIN PLC and GENTING SG
The main advantage of trading using opposite ENTAIN PLC and GENTING SG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENTAIN PLC position performs unexpectedly, GENTING SG 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 GENTING SG will offset losses from the drop in GENTING SG's long position.| ENTAIN PLC vs. China Resources Beer | ENTAIN PLC vs. BORR DRILLING NEW | ENTAIN PLC vs. BE Semiconductor Industries | ENTAIN PLC vs. Tsingtao Brewery |
| GENTING SG vs. Las Vegas Sands | GENTING SG vs. Galaxy Entertainment Group | GENTING SG vs. Sands China | GENTING SG 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |