Correlation Between Table Trac and Golden Entertainment
Can any of the company-specific risk be diversified away by investing in both Table Trac and Golden 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 Table Trac and Golden Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Table Trac and Golden Entertainment, you can compare the effects of market volatilities on Table Trac and Golden 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 Table Trac with a short position of Golden Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Table Trac and Golden Entertainment.
Diversification Opportunities for Table Trac and Golden Entertainment
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Table and Golden is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Table Trac and Golden Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Entertainment and Table Trac 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 Table Trac are associated (or correlated) with Golden Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Entertainment has no effect on the direction of Table Trac i.e., Table Trac and Golden Entertainment go up and down completely randomly.
Pair Corralation between Table Trac and Golden Entertainment
Given the investment horizon of 90 days Table Trac is expected to generate 1.48 times more return on investment than Golden Entertainment. However, Table Trac is 1.48 times more volatile than Golden Entertainment. It trades about 0.0 of its potential returns per unit of risk. Golden Entertainment is currently generating about 0.0 per unit of risk. If you would invest 492.00 in Table Trac on August 25, 2024 and sell it today you would lose (92.00) from holding Table Trac or give up 18.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.56% |
| Values | Daily Returns |
Table Trac vs. Golden Entertainment
Performance |
| Timeline |
| Table Trac |
| Golden Entertainment |
Table Trac and Golden Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Table Trac and Golden Entertainment
The main advantage of trading using opposite Table Trac and Golden Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Table Trac position performs unexpectedly, Golden 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 Golden Entertainment will offset losses from the drop in Golden Entertainment's long position.| Table Trac vs. Banyan Tree Holdings | Table Trac vs. Nagacorp | Table Trac vs. Wynn Macau | Table Trac vs. MGM China Holdings |
| Golden Entertainment vs. Red Rock Resorts | Golden Entertainment vs. Century Casinos | Golden Entertainment vs. Studio City International | Golden Entertainment vs. Ballys Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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