Correlation Between Monarch Casino and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Monarch Casino and Dow Jones 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 Monarch Casino and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monarch Casino Resort and Dow Jones Industrial, you can compare the effects of market volatilities on Monarch Casino and Dow Jones 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 Monarch Casino with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monarch Casino and Dow Jones.
Diversification Opportunities for Monarch Casino and Dow Jones
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Monarch and Dow is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Monarch Casino Resort and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Monarch Casino 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 Monarch Casino Resort are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Monarch Casino i.e., Monarch Casino and Dow Jones go up and down completely randomly.
Pair Corralation between Monarch Casino and Dow Jones
Given the investment horizon of 90 days Monarch Casino Resort is expected to generate 2.04 times more return on investment than Dow Jones. However, Monarch Casino is 2.04 times more volatile than Dow Jones Industrial. It trades about 0.07 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 6,806 in Monarch Casino Resort on November 3, 2024 and sell it today you would earn a total of 1,728 from holding Monarch Casino Resort or generate 25.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monarch Casino Resort vs. Dow Jones Industrial
Performance |
| Timeline |
Monarch Casino and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Monarch Casino Resort
Pair trading matchups for Monarch Casino
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Monarch Casino and Dow Jones
The main advantage of trading using opposite Monarch Casino and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monarch Casino position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Monarch Casino vs. Red Rock Resorts | Monarch Casino vs. Full House Resorts | Monarch Casino vs. Ballys Corp | Monarch Casino vs. Golden Entertainment |
| Dow Jones vs. Rambler Metals and | Dow Jones vs. Nicola Mining | Dow Jones vs. Old Dominion Freight | Dow Jones vs. United Guardian |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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