Correlation Between Genting Singapore and Las Vegas
Can any of the company-specific risk be diversified away by investing in both Genting Singapore and Las Vegas 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 Las Vegas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genting Singapore PLC and Las Vegas Sands, you can compare the effects of market volatilities on Genting Singapore and Las Vegas 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 Las Vegas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genting Singapore and Las Vegas.
Diversification Opportunities for Genting Singapore and Las Vegas
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Genting and Las is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Genting Singapore PLC and Las Vegas Sands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Las Vegas Sands 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 PLC are associated (or correlated) with Las Vegas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Las Vegas Sands has no effect on the direction of Genting Singapore i.e., Genting Singapore and Las Vegas go up and down completely randomly.
Pair Corralation between Genting Singapore and Las Vegas
Assuming the 90 days horizon Genting Singapore PLC is expected to generate 1.84 times more return on investment than Las Vegas. However, Genting Singapore is 1.84 times more volatile than Las Vegas Sands. It trades about 0.02 of its potential returns per unit of risk. Las Vegas Sands is currently generating about 0.02 per unit of risk. If you would invest 3,062 in Genting Singapore PLC on September 3, 2024 and sell it today you would earn a total of 10.00 from holding Genting Singapore PLC or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 87.88% |
| Values | Daily Returns |
Genting Singapore PLC vs. Las Vegas Sands
Performance |
| Timeline |
| Genting Singapore PLC |
| Las Vegas Sands |
Genting Singapore and Las Vegas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genting Singapore and Las Vegas
The main advantage of trading using opposite Genting Singapore and Las Vegas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genting Singapore position performs unexpectedly, Las Vegas 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 Las Vegas will offset losses from the drop in Las Vegas' long position.| Genting Singapore vs. Westinghouse Air Brake | Genting Singapore vs. Senmiao Technology | Genting Singapore vs. Tootsie Roll Industries | Genting Singapore vs. Mayfair Gold Corp |
| Las Vegas vs. MGM Resorts International | Las Vegas vs. Caesars Entertainment | Las Vegas vs. Penn National Gaming | Las Vegas vs. Melco Resorts Entertainment |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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