Correlation Between Video River and Galaxy Entertainment
Can any of the company-specific risk be diversified away by investing in both Video River and Galaxy Entertainment 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 Video River and Galaxy Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Video River Networks and Galaxy Entertainment Group, you can compare the effects of market volatilities on Video River and Galaxy Entertainment 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 Video River with a short position of Galaxy Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Video River and Galaxy Entertainment.
Diversification Opportunities for Video River and Galaxy Entertainment
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Video and Galaxy is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Video River Networks and Galaxy Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Entertainment and Video River 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 Video River Networks are associated (or correlated) with Galaxy Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Entertainment has no effect on the direction of Video River i.e., Video River and Galaxy Entertainment go up and down completely randomly.
Pair Corralation between Video River and Galaxy Entertainment
Given the investment horizon of 90 days Video River Networks is expected to generate 4.77 times more return on investment than Galaxy Entertainment. However, Video River is 4.77 times more volatile than Galaxy Entertainment Group. It trades about -0.02 of its potential returns per unit of risk. Galaxy Entertainment Group is currently generating about -0.08 per unit of risk. If you would invest 0.35 in Video River Networks on August 28, 2024 and sell it today you would lose (0.18) from holding Video River Networks or give up 51.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Video River Networks vs. Galaxy Entertainment Group
Performance |
| Timeline |
| Video River Networks |
| Galaxy Entertainment |
Video River and Galaxy Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Video River and Galaxy Entertainment
The main advantage of trading using opposite Video River and Galaxy Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Video River position performs unexpectedly, Galaxy Entertainment 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 Galaxy Entertainment will offset losses from the drop in Galaxy Entertainment's long position.| Video River vs. Boxlight Corp Class | Video River vs. Siyata Mobile | Video River vs. ClearOne | Video River vs. HUMANA INC |
| Galaxy Entertainment vs. Las Vegas Sands | Galaxy Entertainment vs. MGM Resorts International | Galaxy Entertainment vs. Caesars Entertainment | Galaxy Entertainment vs. Wynn Resorts Limited |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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