Correlation Between SkyCity Entertainment and Wynn Resorts
Can any of the company-specific risk be diversified away by investing in both SkyCity Entertainment and Wynn Resorts 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 SkyCity Entertainment and Wynn Resorts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SkyCity Entertainment Group and Wynn Resorts Limited, you can compare the effects of market volatilities on SkyCity Entertainment and Wynn Resorts 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 SkyCity Entertainment with a short position of Wynn Resorts. Check out your portfolio center. Please also check ongoing floating volatility patterns of SkyCity Entertainment and Wynn Resorts.
Diversification Opportunities for SkyCity Entertainment and Wynn Resorts
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SkyCity and Wynn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SkyCity Entertainment Group and Wynn Resorts Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wynn Resorts Limited and SkyCity Entertainment 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 SkyCity Entertainment Group are associated (or correlated) with Wynn Resorts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wynn Resorts Limited has no effect on the direction of SkyCity Entertainment i.e., SkyCity Entertainment and Wynn Resorts go up and down completely randomly.
Pair Corralation between SkyCity Entertainment and Wynn Resorts
Assuming the 90 days horizon SkyCity Entertainment Group is expected to under-perform the Wynn Resorts. In addition to that, SkyCity Entertainment is 1.16 times more volatile than Wynn Resorts Limited. It trades about 0.0 of its total potential returns per unit of risk. Wynn Resorts Limited is currently generating about 0.03 per unit of volatility. If you would invest 8,507 in Wynn Resorts Limited on September 4, 2024 and sell it today you would earn a total of 869.00 from holding Wynn Resorts Limited or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 78.14% |
| Values | Daily Returns |
SkyCity Entertainment Group vs. Wynn Resorts Limited
Performance |
| Timeline |
| SkyCity Entertainment |
| Wynn Resorts Limited |
SkyCity Entertainment and Wynn Resorts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SkyCity Entertainment and Wynn Resorts
The main advantage of trading using opposite SkyCity Entertainment and Wynn Resorts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SkyCity Entertainment position performs unexpectedly, Wynn Resorts 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 Resorts will offset losses from the drop in Wynn Resorts' long position.| SkyCity Entertainment vs. Nagacorp | SkyCity Entertainment vs. Wynn Macau | SkyCity Entertainment vs. MGM China Holdings | SkyCity Entertainment vs. Table Trac |
| Wynn Resorts vs. MGM Resorts International | Wynn Resorts vs. Caesars Entertainment | Wynn Resorts vs. Melco Resorts Entertainment | Wynn Resorts vs. Penn National Gaming |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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