Correlation Between ENTAIN PLC and Sands China
Can any of the company-specific risk be diversified away by investing in both ENTAIN PLC and Sands China 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 Sands China 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 Sands China, you can compare the effects of market volatilities on ENTAIN PLC and Sands China 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 Sands China. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENTAIN PLC and Sands China.
Diversification Opportunities for ENTAIN PLC and Sands China
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ENTAIN and Sands is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding ENTAIN PLC UNSPADR1 and Sands China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sands China 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 Sands China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sands China has no effect on the direction of ENTAIN PLC i.e., ENTAIN PLC and Sands China go up and down completely randomly.
Pair Corralation between ENTAIN PLC and Sands China
Assuming the 90 days trading horizon ENTAIN PLC is expected to generate 3.64 times less return on investment than Sands China. But when comparing it to its historical volatility, ENTAIN PLC UNSPADR1 is 1.53 times less risky than Sands China. It trades about 0.05 of its potential returns per unit of risk. Sands China is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 154.00 in Sands China on November 2, 2024 and sell it today you would earn a total of 68.00 from holding Sands China or generate 44.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ENTAIN PLC UNSPADR1 vs. Sands China
Performance |
| Timeline |
| ENTAIN PLC UNSPADR1 |
| Sands China |
ENTAIN PLC and Sands China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENTAIN PLC and Sands China
The main advantage of trading using opposite ENTAIN PLC and Sands China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENTAIN PLC position performs unexpectedly, Sands China 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 Sands China will offset losses from the drop in Sands China's 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 |
| Sands China vs. Charter Communications | Sands China vs. GEELY AUTOMOBILE | Sands China vs. SEI INVESTMENTS | Sands China vs. Keck Seng Investments |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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