Correlation Between Galaxy Entertainment and ENTAIN PLC
Can any of the company-specific risk be diversified away by investing in both Galaxy Entertainment and ENTAIN PLC 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 ENTAIN PLC 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 ENTAIN PLC UNSPADR1, you can compare the effects of market volatilities on Galaxy Entertainment and ENTAIN PLC 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 ENTAIN PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Entertainment and ENTAIN PLC.
Diversification Opportunities for Galaxy Entertainment and ENTAIN PLC
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Galaxy and ENTAIN is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Entertainment Group and ENTAIN PLC UNSPADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTAIN PLC UNSPADR1 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 ENTAIN PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTAIN PLC UNSPADR1 has no effect on the direction of Galaxy Entertainment i.e., Galaxy Entertainment and ENTAIN PLC go up and down completely randomly.
Pair Corralation between Galaxy Entertainment and ENTAIN PLC
Assuming the 90 days trading horizon Galaxy Entertainment Group is expected to generate 1.53 times more return on investment than ENTAIN PLC. However, Galaxy Entertainment is 1.53 times more volatile than ENTAIN PLC UNSPADR1. It trades about 0.12 of its potential returns per unit of risk. ENTAIN PLC UNSPADR1 is currently generating about 0.05 per unit of risk. If you would invest 285.00 in Galaxy Entertainment Group on November 2, 2024 and sell it today you would earn a total of 135.00 from holding Galaxy Entertainment Group or generate 47.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galaxy Entertainment Group vs. ENTAIN PLC UNSPADR1
Performance |
| Timeline |
| Galaxy Entertainment |
| ENTAIN PLC UNSPADR1 |
Galaxy Entertainment and ENTAIN PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Entertainment and ENTAIN PLC
The main advantage of trading using opposite Galaxy Entertainment and ENTAIN PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Entertainment position performs unexpectedly, ENTAIN PLC 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 ENTAIN PLC will offset losses from the drop in ENTAIN PLC's long position.| Galaxy Entertainment vs. Las Vegas Sands | Galaxy Entertainment vs. Sands China | Galaxy Entertainment vs. MGM Resorts International | Galaxy Entertainment vs. Wynn Resorts Limited |
| ENTAIN PLC vs. Las Vegas Sands | ENTAIN PLC vs. Galaxy Entertainment Group | ENTAIN PLC vs. Sands China | ENTAIN PLC vs. MGM Resorts International |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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