Correlation Between Wynn Resorts and Booking Holdings
Can any of the company-specific risk be diversified away by investing in both Wynn Resorts and Booking Holdings 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 Wynn Resorts and Booking Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wynn Resorts Limited and Booking Holdings, you can compare the effects of market volatilities on Wynn Resorts and Booking Holdings 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 Wynn Resorts with a short position of Booking Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wynn Resorts and Booking Holdings.
Diversification Opportunities for Wynn Resorts and Booking Holdings
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wynn and Booking is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Wynn Resorts Limited and Booking Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Booking Holdings and Wynn 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 Wynn Resorts Limited are associated (or correlated) with Booking Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Booking Holdings has no effect on the direction of Wynn Resorts i.e., Wynn Resorts and Booking Holdings go up and down completely randomly.
Pair Corralation between Wynn Resorts and Booking Holdings
Given the investment horizon of 90 days Wynn Resorts Limited is expected to under-perform the Booking Holdings. In addition to that, Wynn Resorts is 1.22 times more volatile than Booking Holdings. It trades about -0.08 of its total potential returns per unit of risk. Booking Holdings is currently generating about -0.02 per unit of volatility. If you would invest 500,948 in Booking Holdings on October 19, 2024 and sell it today you would lose (8,268) from holding Booking Holdings or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wynn Resorts Limited vs. Booking Holdings
Performance |
| Timeline |
| Wynn Resorts Limited |
| Booking Holdings |
Wynn Resorts and Booking Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wynn Resorts and Booking Holdings
The main advantage of trading using opposite Wynn Resorts and Booking Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wynn Resorts position performs unexpectedly, Booking Holdings 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 Booking Holdings will offset losses from the drop in Booking Holdings' long position.| Wynn Resorts vs. MGM Resorts International | Wynn Resorts vs. Caesars Entertainment | Wynn Resorts vs. Melco Resorts Entertainment | Wynn Resorts vs. Penn National Gaming |
| Booking Holdings vs. TripAdvisor | Booking Holdings vs. Airbnb Inc | Booking Holdings vs. Royal Caribbean Cruises | Booking Holdings vs. Norwegian Cruise Line |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |