Correlation Between Monarch Casino and Wynn Macau
Can any of the company-specific risk be diversified away by investing in both Monarch Casino and Wynn Macau 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 Wynn Macau 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 Wynn Macau, you can compare the effects of market volatilities on Monarch Casino and Wynn Macau 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 Wynn Macau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monarch Casino and Wynn Macau.
Diversification Opportunities for Monarch Casino and Wynn Macau
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Monarch and Wynn is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Monarch Casino Resort and Wynn Macau in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wynn Macau 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 Wynn Macau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wynn Macau has no effect on the direction of Monarch Casino i.e., Monarch Casino and Wynn Macau go up and down completely randomly.
Pair Corralation between Monarch Casino and Wynn Macau
Given the investment horizon of 90 days Monarch Casino Resort is expected to generate 0.44 times more return on investment than Wynn Macau. However, Monarch Casino Resort is 2.3 times less risky than Wynn Macau. It trades about 0.36 of its potential returns per unit of risk. Wynn Macau is currently generating about -0.23 per unit of risk. If you would invest 7,843 in Monarch Casino Resort on August 25, 2024 and sell it today you would earn a total of 599.00 from holding Monarch Casino Resort or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monarch Casino Resort vs. Wynn Macau
Performance |
| Timeline |
| Monarch Casino Resort |
| Wynn Macau |
Monarch Casino and Wynn Macau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monarch Casino and Wynn Macau
The main advantage of trading using opposite Monarch Casino and Wynn Macau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monarch Casino position performs unexpectedly, Wynn Macau 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 Wynn Macau will offset losses from the drop in Wynn Macau's long position.| Monarch Casino vs. Red Rock Resorts | Monarch Casino vs. Full House Resorts | Monarch Casino vs. Ballys Corp | Monarch Casino vs. Golden Entertainment |
| Wynn Macau vs. Banyan Tree Holdings | Wynn Macau vs. Nagacorp | Wynn Macau vs. MGM China Holdings | Wynn Macau vs. Table Trac |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |