Correlation Between Grupe SAB and MGM Resorts
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By analyzing existing cross correlation between Grupe SAB de and MGM Resorts International, you can compare the effects of market volatilities on Grupe SAB and MGM Resorts 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 Grupe SAB with a short position of MGM Resorts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupe SAB and MGM Resorts.
Diversification Opportunities for Grupe SAB and MGM Resorts
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupe and MGM is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Grupe SAB de and MGM Resorts International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGM Resorts International and Grupe SAB 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 Grupe SAB de are associated (or correlated) with MGM Resorts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGM Resorts International has no effect on the direction of Grupe SAB i.e., Grupe SAB and MGM Resorts go up and down completely randomly.
Pair Corralation between Grupe SAB and MGM Resorts
Assuming the 90 days trading horizon Grupe SAB de is expected to under-perform the MGM Resorts. But the stock apears to be less risky and, when comparing its historical volatility, Grupe SAB de is 31.9 times less risky than MGM Resorts. The stock trades about -0.22 of its potential returns per unit of risk. The MGM Resorts International is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 75,000 in MGM Resorts International on September 2, 2024 and sell it today you would earn a total of 2,800 from holding MGM Resorts International or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupe SAB de vs. MGM Resorts International
Performance |
| Timeline |
| Grupe SAB de |
| MGM Resorts International |
Grupe SAB and MGM Resorts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupe SAB and MGM Resorts
The main advantage of trading using opposite Grupe SAB and MGM Resorts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupe SAB position performs unexpectedly, MGM Resorts 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 MGM Resorts will offset losses from the drop in MGM Resorts' long position.| Grupe SAB vs. CEMEX SAB de | Grupe SAB vs. Grupo Financiero Banorte | Grupe SAB vs. Grupo Bimbo SAB | Grupe SAB vs. Fomento Econmico Mexicano |
| MGM Resorts vs. Applied Materials | MGM Resorts vs. CVS Health | MGM Resorts vs. McEwen Mining | MGM Resorts vs. Cognizant Technology Solutions |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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