Correlation Between Genting Singapore and Wynn Resorts
Can any of the company-specific risk be diversified away by investing in both Genting Singapore and Wynn Resorts 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 Wynn Resorts 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 Wynn Resorts Limited, you can compare the effects of market volatilities on Genting Singapore and Wynn Resorts 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 Wynn Resorts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genting Singapore and Wynn Resorts.
Diversification Opportunities for Genting Singapore and Wynn Resorts
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Genting and Wynn is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Genting Singapore PLC and Wynn Resorts Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wynn Resorts Limited 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 Wynn Resorts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wynn Resorts Limited has no effect on the direction of Genting Singapore i.e., Genting Singapore and Wynn Resorts go up and down completely randomly.
Pair Corralation between Genting Singapore and Wynn Resorts
Assuming the 90 days horizon Genting Singapore is expected to generate 215.39 times less return on investment than Wynn Resorts. In addition to that, Genting Singapore is 1.07 times more volatile than Wynn Resorts Limited. It trades about 0.0 of its total potential returns per unit of risk. Wynn Resorts Limited is currently generating about 0.14 per unit of volatility. If you would invest 7,606 in Wynn Resorts Limited on September 12, 2024 and sell it today you would earn a total of 1,915 from holding Wynn Resorts Limited or generate 25.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Genting Singapore PLC vs. Wynn Resorts Limited
Performance |
| Timeline |
| Genting Singapore PLC |
| Wynn Resorts Limited |
Genting Singapore and Wynn Resorts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genting Singapore and Wynn Resorts
The main advantage of trading using opposite Genting Singapore and Wynn Resorts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genting Singapore position performs unexpectedly, Wynn Resorts 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 Wynn Resorts will offset losses from the drop in Wynn Resorts' long position.| Genting Singapore vs. Omni Health | Genting Singapore vs. Kontoor Brands | Genting Singapore vs. Lipocine | Genting Singapore vs. Nike Inc |
| Wynn Resorts vs. MGM Resorts International | Wynn Resorts vs. Las Vegas Sands | Wynn Resorts vs. Melco Resorts Entertainment | Wynn Resorts vs. Caesars 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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