Correlation Between Genting Singapore and Sands China

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Can any of the company-specific risk be diversified away by investing in both Genting Singapore 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 Genting Singapore and Sands China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genting Singapore Limited and Sands China Ltd, you can compare the effects of market volatilities on Genting Singapore 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 Genting Singapore with a short position of Sands China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genting Singapore and Sands China.

Diversification Opportunities for Genting Singapore and Sands China

0.02
  Correlation Coefficient

Significant diversification

The 3 months correlation between Genting and Sands is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Genting Singapore Limited and Sands China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sands China and Genting Singapore 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 Genting Singapore Limited 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 Genting Singapore i.e., Genting Singapore and Sands China go up and down completely randomly.

Pair Corralation between Genting Singapore and Sands China

If you would invest  2,624  in Sands China Ltd on September 12, 2024 and sell it today you would earn a total of  97.00  from holding Sands China Ltd or generate 3.7% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Genting Singapore Limited  vs.  Sands China Ltd

 Performance 
       Timeline  
Genting Singapore 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Genting Singapore Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Genting Singapore is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
Sands China 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Sands China Ltd are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Sands China showed solid returns over the last few months and may actually be approaching a breakup point.

Genting Singapore and Sands China Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Genting Singapore and Sands China

The main advantage of trading using opposite Genting Singapore and Sands China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genting Singapore 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.
The idea behind Genting Singapore Limited and Sands China Ltd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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