Correlation Between Hilton Grand and Monarch Casino
Can any of the company-specific risk be diversified away by investing in both Hilton Grand and Monarch Casino 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 Hilton Grand and Monarch Casino into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hilton Grand Vacations and Monarch Casino Resort, you can compare the effects of market volatilities on Hilton Grand and Monarch Casino 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 Hilton Grand with a short position of Monarch Casino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Grand and Monarch Casino.
Diversification Opportunities for Hilton Grand and Monarch Casino
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hilton and Monarch is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Grand Vacations and Monarch Casino Resort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monarch Casino Resort and Hilton Grand 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 Hilton Grand Vacations are associated (or correlated) with Monarch Casino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monarch Casino Resort has no effect on the direction of Hilton Grand i.e., Hilton Grand and Monarch Casino go up and down completely randomly.
Pair Corralation between Hilton Grand and Monarch Casino
Considering the 90-day investment horizon Hilton Grand is expected to generate 1.85 times less return on investment than Monarch Casino. In addition to that, Hilton Grand is 1.45 times more volatile than Monarch Casino Resort. It trades about 0.01 of its total potential returns per unit of risk. Monarch Casino Resort is currently generating about 0.02 per unit of volatility. If you would invest 7,468 in Monarch Casino Resort on August 24, 2024 and sell it today you would earn a total of 974.00 from holding Monarch Casino Resort or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hilton Grand Vacations vs. Monarch Casino Resort
Performance |
| Timeline |
| Hilton Grand Vacations |
| Monarch Casino Resort |
Hilton Grand and Monarch Casino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hilton Grand and Monarch Casino
The main advantage of trading using opposite Hilton Grand and Monarch Casino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Grand position performs unexpectedly, Monarch Casino 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 Monarch Casino will offset losses from the drop in Monarch Casino's long position.| Hilton Grand vs. Vail Resorts | Hilton Grand vs. Monarch Casino Resort | Hilton Grand vs. Playa Hotels Resorts | Hilton Grand vs. Studio City International |
| Monarch Casino vs. Golden Entertainment | Monarch Casino vs. Red Rock Resorts | Monarch Casino vs. Century Casinos | Monarch Casino vs. Ballys Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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