Correlation Between Las Vegas and GENTING SG
Can any of the company-specific risk be diversified away by investing in both Las Vegas and GENTING SG 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 Las Vegas and GENTING SG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Las Vegas Sands and GENTING SG LTD, you can compare the effects of market volatilities on Las Vegas and GENTING SG 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 Las Vegas with a short position of GENTING SG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Las Vegas and GENTING SG.
Diversification Opportunities for Las Vegas and GENTING SG
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Las and GENTING is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Las Vegas Sands and GENTING SG LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENTING SG LTD and Las Vegas 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 Las Vegas Sands are associated (or correlated) with GENTING SG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENTING SG LTD has no effect on the direction of Las Vegas i.e., Las Vegas and GENTING SG go up and down completely randomly.
Pair Corralation between Las Vegas and GENTING SG
Assuming the 90 days horizon Las Vegas Sands is expected to under-perform the GENTING SG. But the stock apears to be less risky and, when comparing its historical volatility, Las Vegas Sands is 1.83 times less risky than GENTING SG. The stock trades about -0.44 of its potential returns per unit of risk. The GENTING SG LTD is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 52.00 in GENTING SG LTD on October 20, 2024 and sell it today you would earn a total of 0.00 from holding GENTING SG LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Las Vegas Sands vs. GENTING SG LTD
Performance |
| Timeline |
| Las Vegas Sands |
| GENTING SG LTD |
Las Vegas and GENTING SG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Las Vegas and GENTING SG
The main advantage of trading using opposite Las Vegas and GENTING SG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Las Vegas position performs unexpectedly, GENTING SG 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 GENTING SG will offset losses from the drop in GENTING SG's long position.| Las Vegas vs. Galaxy Entertainment Group | Las Vegas vs. Sands China | Las Vegas vs. MGM Resorts International | Las Vegas vs. Wynn Resorts Limited |
| GENTING SG vs. Las Vegas Sands | GENTING SG vs. Galaxy Entertainment Group | GENTING SG vs. Sands China | GENTING SG 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |