Correlation Between Golden Entertainment and Archon
Can any of the company-specific risk be diversified away by investing in both Golden Entertainment and Archon 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 Golden Entertainment and Archon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Entertainment and Archon, you can compare the effects of market volatilities on Golden Entertainment and Archon 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 Golden Entertainment with a short position of Archon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Entertainment and Archon.
Diversification Opportunities for Golden Entertainment and Archon
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Golden and Archon is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Golden Entertainment and Archon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Archon and Golden Entertainment 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 Golden Entertainment are associated (or correlated) with Archon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Archon has no effect on the direction of Golden Entertainment i.e., Golden Entertainment and Archon go up and down completely randomly.
Pair Corralation between Golden Entertainment and Archon
If you would invest 3,102 in Golden Entertainment on August 27, 2024 and sell it today you would earn a total of 298.00 from holding Golden Entertainment or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Entertainment vs. Archon
Performance |
| Timeline |
| Golden Entertainment |
| Archon |
Golden Entertainment and Archon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Entertainment and Archon
The main advantage of trading using opposite Golden Entertainment and Archon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Entertainment position performs unexpectedly, Archon 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 Archon will offset losses from the drop in Archon's long position.| Golden Entertainment vs. Red Rock Resorts | Golden Entertainment vs. Century Casinos | Golden Entertainment vs. Studio City International | Golden Entertainment vs. Ballys Corp |
| Archon vs. Century Casinos | Archon vs. Golden Entertainment | Archon vs. Monarch Casino Resort | Archon vs. Red Rock Resorts |
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.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |