Correlation Between MGM Resorts and DXC Technology
Can any of the company-specific risk be diversified away by investing in both MGM Resorts and DXC Technology 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 MGM Resorts and DXC Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MGM Resorts International and DXC Technology, you can compare the effects of market volatilities on MGM Resorts and DXC Technology 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 MGM Resorts with a short position of DXC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGM Resorts and DXC Technology.
Diversification Opportunities for MGM Resorts and DXC Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MGM and DXC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MGM Resorts International and DXC Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXC Technology and MGM Resorts 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 MGM Resorts International are associated (or correlated) with DXC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXC Technology has no effect on the direction of MGM Resorts i.e., MGM Resorts and DXC Technology go up and down completely randomly.
Pair Corralation between MGM Resorts and DXC Technology
If you would invest 74,500 in MGM Resorts International on September 12, 2024 and sell it today you would earn a total of 30.00 from holding MGM Resorts International or generate 0.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MGM Resorts International vs. DXC Technology
Performance |
| Timeline |
| MGM Resorts International |
| DXC Technology |
MGM Resorts and DXC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGM Resorts and DXC Technology
The main advantage of trading using opposite MGM Resorts and DXC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGM Resorts position performs unexpectedly, DXC Technology 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 DXC Technology will offset losses from the drop in DXC Technology's long position.| MGM Resorts vs. FibraHotel | MGM Resorts vs. Delta Air Lines | MGM Resorts vs. Grupo Hotelero Santa | MGM Resorts vs. Southwest Airlines |
| DXC Technology vs. GMxico Transportes SAB | DXC Technology vs. Micron Technology | DXC Technology vs. Monster Beverage Corp | DXC Technology vs. Verizon Communications |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |