Correlation Between Galaxy Entertainment and Las Vegas
Can any of the company-specific risk be diversified away by investing in both Galaxy Entertainment 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 Galaxy Entertainment and Las Vegas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galaxy Entertainment Group and Las Vegas Sands, you can compare the effects of market volatilities on Galaxy Entertainment 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 Galaxy Entertainment with a short position of Las Vegas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Entertainment and Las Vegas.
Diversification Opportunities for Galaxy Entertainment and Las Vegas
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Galaxy and Las is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Entertainment Group 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 Galaxy 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 Galaxy Entertainment Group 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 Galaxy Entertainment i.e., Galaxy Entertainment and Las Vegas go up and down completely randomly.
Pair Corralation between Galaxy Entertainment and Las Vegas
Assuming the 90 days horizon Galaxy Entertainment Group is expected to under-perform the Las Vegas. In addition to that, Galaxy Entertainment is 1.76 times more volatile than Las Vegas Sands. It trades about -0.13 of its total potential returns per unit of risk. Las Vegas Sands is currently generating about -0.14 per unit of volatility. If you would invest 5,341 in Las Vegas Sands on August 29, 2024 and sell it today you would lose (249.00) from holding Las Vegas Sands or give up 4.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galaxy Entertainment Group vs. Las Vegas Sands
Performance |
| Timeline |
| Galaxy Entertainment |
| Las Vegas Sands |
Galaxy Entertainment and Las Vegas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Entertainment and Las Vegas
The main advantage of trading using opposite Galaxy Entertainment and Las Vegas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Entertainment 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.| Galaxy Entertainment vs. Las Vegas Sands | Galaxy Entertainment vs. MGM Resorts International | Galaxy Entertainment vs. Caesars Entertainment | Galaxy Entertainment vs. Wynn Resorts Limited |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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