Correlation Between Macau Legend and Monarch Casino
Can any of the company-specific risk be diversified away by investing in both Macau Legend 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 Macau Legend and Monarch Casino into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macau Legend Development and Monarch Casino Resort, you can compare the effects of market volatilities on Macau Legend 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 Macau Legend with a short position of Monarch Casino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macau Legend and Monarch Casino.
Diversification Opportunities for Macau Legend and Monarch Casino
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Macau and Monarch is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Macau Legend Development 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 Macau Legend 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 Macau Legend Development 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 Macau Legend i.e., Macau Legend and Monarch Casino go up and down completely randomly.
Pair Corralation between Macau Legend and Monarch Casino
If you would invest 7,912 in Monarch Casino Resort on August 28, 2024 and sell it today you would earn a total of 673.00 from holding Monarch Casino Resort or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macau Legend Development vs. Monarch Casino Resort
Performance |
| Timeline |
| Macau Legend Development |
| Monarch Casino Resort |
Macau Legend and Monarch Casino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macau Legend and Monarch Casino
The main advantage of trading using opposite Macau Legend and Monarch Casino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macau Legend 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.| Macau Legend vs. Monarch Casino Resort | Macau Legend vs. Red Rock Resorts | Macau Legend vs. Full House Resorts | Macau Legend vs. Ballys Corp |
| Monarch Casino vs. Red Rock Resorts | Monarch Casino vs. Full House Resorts | Monarch Casino vs. Ballys Corp | Monarch Casino vs. Golden Entertainment |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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