Correlation Between Golden Entertainment and SkyCity Entertainment
Can any of the company-specific risk be diversified away by investing in both Golden Entertainment and SkyCity Entertainment 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 SkyCity Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Entertainment and SkyCity Entertainment Group, you can compare the effects of market volatilities on Golden Entertainment and SkyCity Entertainment 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 SkyCity Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Entertainment and SkyCity Entertainment.
Diversification Opportunities for Golden Entertainment and SkyCity Entertainment
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Golden and SkyCity is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Golden Entertainment and SkyCity Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SkyCity Entertainment 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 SkyCity Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SkyCity Entertainment has no effect on the direction of Golden Entertainment i.e., Golden Entertainment and SkyCity Entertainment go up and down completely randomly.
Pair Corralation between Golden Entertainment and SkyCity Entertainment
Given the investment horizon of 90 days Golden Entertainment is expected to generate 0.72 times more return on investment than SkyCity Entertainment. However, Golden Entertainment is 1.39 times less risky than SkyCity Entertainment. It trades about 0.0 of its potential returns per unit of risk. SkyCity Entertainment Group is currently generating about -0.04 per unit of risk. If you would invest 3,990 in Golden Entertainment on August 25, 2024 and sell it today you would lose (602.00) from holding Golden Entertainment or give up 15.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 69.42% |
| Values | Daily Returns |
Golden Entertainment vs. SkyCity Entertainment Group
Performance |
| Timeline |
| Golden Entertainment |
| SkyCity Entertainment |
Golden Entertainment and SkyCity Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Entertainment and SkyCity Entertainment
The main advantage of trading using opposite Golden Entertainment and SkyCity Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Entertainment position performs unexpectedly, SkyCity Entertainment 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 SkyCity Entertainment will offset losses from the drop in SkyCity Entertainment'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 |
| SkyCity Entertainment vs. Nagacorp | SkyCity Entertainment vs. Wynn Macau | SkyCity Entertainment vs. MGM China Holdings | SkyCity Entertainment vs. Table Trac |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |