Correlation Between Video River and Melco International
Can any of the company-specific risk be diversified away by investing in both Video River and Melco International 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 Melco International 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 Melco International Development, you can compare the effects of market volatilities on Video River and Melco International 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 Melco International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Video River and Melco International.
Diversification Opportunities for Video River and Melco International
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Video and Melco is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Video River Networks and Melco International Developmen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Melco International 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 Melco International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Melco International has no effect on the direction of Video River i.e., Video River and Melco International go up and down completely randomly.
Pair Corralation between Video River and Melco International
Given the investment horizon of 90 days Video River Networks is expected to under-perform the Melco International. In addition to that, Video River is 7.23 times more volatile than Melco International Development. It trades about -0.04 of its total potential returns per unit of risk. Melco International Development is currently generating about -0.08 per unit of volatility. If you would invest 64.00 in Melco International Development on August 30, 2024 and sell it today you would lose (4.00) from holding Melco International Development or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Video River Networks vs. Melco International Developmen
Performance |
| Timeline |
| Video River Networks |
| Melco International |
Video River and Melco International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Video River and Melco International
The main advantage of trading using opposite Video River and Melco International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Video River position performs unexpectedly, Melco International 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 Melco International will offset losses from the drop in Melco International's long position.| Video River vs. Eco Depot | Video River vs. GiveMePower Corp | Video River vs. Vopia Inc | Video River vs. Majic Wheels Corp |
| Melco International vs. Las Vegas Sands | Melco International vs. MGM Resorts International | Melco International vs. Caesars Entertainment | Melco International 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |