Correlation Between Galaxy Entertainment and Sands China
Can any of the company-specific risk be diversified away by investing in both Galaxy Entertainment 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 Galaxy Entertainment and Sands China 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 Sands China, you can compare the effects of market volatilities on Galaxy Entertainment 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 Galaxy Entertainment with a short position of Sands China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Entertainment and Sands China.
Diversification Opportunities for Galaxy Entertainment and Sands China
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Galaxy and Sands is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Entertainment Group and Sands China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sands China 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 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 Galaxy Entertainment i.e., Galaxy Entertainment and Sands China go up and down completely randomly.
Pair Corralation between Galaxy Entertainment and Sands China
Assuming the 90 days trading horizon Galaxy Entertainment Group is expected to generate 0.92 times more return on investment than Sands China. However, Galaxy Entertainment Group is 1.08 times less risky than Sands China. It trades about 0.01 of its potential returns per unit of risk. Sands China is currently generating about 0.0 per unit of risk. If you would invest 473.00 in Galaxy Entertainment Group on September 12, 2024 and sell it today you would lose (21.00) from holding Galaxy Entertainment Group or give up 4.44% 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. Sands China
Performance |
| Timeline |
| Galaxy Entertainment |
| Sands China |
Galaxy Entertainment and Sands China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Entertainment and Sands China
The main advantage of trading using opposite Galaxy Entertainment and Sands China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Entertainment 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.| Galaxy Entertainment vs. Sands China | Galaxy Entertainment vs. Superior Plus Corp | Galaxy Entertainment vs. SIVERS SEMICONDUCTORS AB | Galaxy Entertainment vs. Norsk Hydro ASA |
| Sands China vs. Mitsubishi Gas Chemical | Sands China vs. INTERSHOP Communications Aktiengesellschaft | Sands China vs. Entravision Communications | Sands China vs. China BlueChemical |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |