Correlation Between Las Vegas and Entain Plc
Can any of the company-specific risk be diversified away by investing in both Las Vegas 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 Las Vegas and Entain Plc 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 Entain Plc, you can compare the effects of market volatilities on Las Vegas 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 Las Vegas with a short position of Entain Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Las Vegas and Entain Plc.
Diversification Opportunities for Las Vegas and Entain Plc
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Las and Entain is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Las Vegas Sands and Entain Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entain Plc 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 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 has no effect on the direction of Las Vegas i.e., Las Vegas and Entain Plc go up and down completely randomly.
Pair Corralation between Las Vegas and Entain Plc
Assuming the 90 days horizon Las Vegas Sands is expected to generate 0.75 times more return on investment than Entain Plc. However, Las Vegas Sands is 1.33 times less risky than Entain Plc. It trades about 0.12 of its potential returns per unit of risk. Entain Plc is currently generating about 0.05 per unit of risk. If you would invest 3,468 in Las Vegas Sands on November 2, 2024 and sell it today you would earn a total of 967.00 from holding Las Vegas Sands or generate 27.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Las Vegas Sands vs. Entain Plc
Performance |
| Timeline |
| Las Vegas Sands |
| Entain Plc |
Las Vegas and Entain Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Las Vegas and Entain Plc
The main advantage of trading using opposite Las Vegas and Entain Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Las Vegas 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.| Las Vegas vs. Galaxy Entertainment Group | Las Vegas vs. Sands China | Las Vegas vs. MGM Resorts International | Las Vegas vs. Wynn Resorts Limited |
| Entain Plc vs. SILVER BULLET DATA | Entain Plc vs. Insteel Industries | Entain Plc vs. Pure Storage | Entain Plc vs. KOBE STEEL LTD |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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