Correlation Between Genting Singapore and Sands China
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 PLC 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
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Genting and Sands is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Genting Singapore PLC 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 PLC 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
Assuming the 90 days horizon Genting Singapore PLC is expected to under-perform the Sands China. But the pink sheet apears to be less risky and, when comparing its historical volatility, Genting Singapore PLC is 1.22 times less risky than Sands China. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Sands China Ltd is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,347 in Sands China Ltd on September 5, 2024 and sell it today you would earn a total of 266.00 from holding Sands China Ltd or generate 11.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Genting Singapore PLC vs. Sands China Ltd
Performance |
| Timeline |
| Genting Singapore PLC |
| Sands China |
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.| Genting Singapore vs. Las Vegas Sands | Genting Singapore vs. Sands China Ltd | Genting Singapore vs. MGM Resorts International | Genting Singapore vs. Wynn Resorts Limited |
| Sands China vs. SJM Holdings Ltd | Sands China vs. Studio City International | Sands China vs. Monarch Casino Resort | Sands China vs. Playa Hotels 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |