Correlation Between Galaxy Entertainment and Nagacorp
Can any of the company-specific risk be diversified away by investing in both Galaxy Entertainment and Nagacorp 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 Nagacorp 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 Nagacorp, you can compare the effects of market volatilities on Galaxy Entertainment and Nagacorp 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 Nagacorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Entertainment and Nagacorp.
Diversification Opportunities for Galaxy Entertainment and Nagacorp
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Galaxy and Nagacorp is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Entertainment Group and Nagacorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nagacorp 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 Nagacorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nagacorp has no effect on the direction of Galaxy Entertainment i.e., Galaxy Entertainment and Nagacorp go up and down completely randomly.
Pair Corralation between Galaxy Entertainment and Nagacorp
Assuming the 90 days horizon Galaxy Entertainment Group is expected to under-perform the Nagacorp. In addition to that, Galaxy Entertainment is 1.13 times more volatile than Nagacorp. It trades about -0.15 of its total potential returns per unit of risk. Nagacorp is currently generating about -0.15 per unit of volatility. If you would invest 41.00 in Nagacorp on August 28, 2024 and sell it today you would lose (3.00) from holding Nagacorp or give up 7.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Galaxy Entertainment Group vs. Nagacorp
Performance |
| Timeline |
| Galaxy Entertainment |
| Nagacorp |
Galaxy Entertainment and Nagacorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Entertainment and Nagacorp
The main advantage of trading using opposite Galaxy Entertainment and Nagacorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Entertainment position performs unexpectedly, Nagacorp 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 Nagacorp will offset losses from the drop in Nagacorp's 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 |
| Nagacorp vs. Banyan Tree Holdings | Nagacorp vs. Wynn Macau | Nagacorp vs. MGM China Holdings | Nagacorp vs. Table Trac |
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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