Correlation Between Full House and Table Trac
Can any of the company-specific risk be diversified away by investing in both Full House and Table Trac 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 Full House and Table Trac into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Full House Resorts and Table Trac, you can compare the effects of market volatilities on Full House and Table Trac 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 Full House with a short position of Table Trac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Full House and Table Trac.
Diversification Opportunities for Full House and Table Trac
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Full and Table is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Full House Resorts and Table Trac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Table Trac and Full House 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 Full House Resorts are associated (or correlated) with Table Trac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Table Trac has no effect on the direction of Full House i.e., Full House and Table Trac go up and down completely randomly.
Pair Corralation between Full House and Table Trac
Considering the 90-day investment horizon Full House Resorts is expected to under-perform the Table Trac. In addition to that, Full House is 1.0 times more volatile than Table Trac. It trades about -0.01 of its total potential returns per unit of risk. Table Trac is currently generating about 0.0 per unit of volatility. If you would invest 492.00 in Table Trac on August 25, 2024 and sell it today you would lose (92.00) from holding Table Trac or give up 18.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.56% |
| Values | Daily Returns |
Full House Resorts vs. Table Trac
Performance |
| Timeline |
| Full House Resorts |
| Table Trac |
Full House and Table Trac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Full House and Table Trac
The main advantage of trading using opposite Full House and Table Trac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Full House position performs unexpectedly, Table Trac 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 Table Trac will offset losses from the drop in Table Trac's long position.| Full House vs. Monarch Casino Resort | Full House vs. Red Rock Resorts | Full House vs. Golden Entertainment | Full House vs. Playa Hotels Resorts |
| Table Trac vs. Banyan Tree Holdings | Table Trac vs. Nagacorp | Table Trac vs. Wynn Macau | Table Trac vs. MGM China Holdings |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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