Correlation Between Wynn Resorts and Table Trac
Can any of the company-specific risk be diversified away by investing in both Wynn Resorts and Table Trac 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 Table Trac 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 Table Trac, you can compare the effects of market volatilities on Wynn Resorts and Table Trac 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 Table Trac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wynn Resorts and Table Trac.
Diversification Opportunities for Wynn Resorts and Table Trac
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wynn and Table is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Wynn Resorts Limited and Table Trac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Table Trac 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 Table Trac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Table Trac has no effect on the direction of Wynn Resorts i.e., Wynn Resorts and Table Trac go up and down completely randomly.
Pair Corralation between Wynn Resorts and Table Trac
Given the investment horizon of 90 days Wynn Resorts Limited is expected to under-perform the Table Trac. But the stock apears to be less risky and, when comparing its historical volatility, Wynn Resorts Limited is 1.14 times less risky than Table Trac. The stock trades about -0.09 of its potential returns per unit of risk. The Table Trac is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 400.00 in Table Trac on August 30, 2024 and sell it today you would earn a total of 1.00 from holding Table Trac or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Wynn Resorts Limited vs. Table Trac
Performance |
| Timeline |
| Wynn Resorts Limited |
| Table Trac |
Wynn Resorts and Table Trac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wynn Resorts and Table Trac
The main advantage of trading using opposite Wynn Resorts and Table Trac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wynn Resorts position performs unexpectedly, Table Trac 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 Table Trac will offset losses from the drop in Table Trac's 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 |
| Table Trac vs. Las Vegas Sands | Table Trac vs. MGM Resorts International | Table Trac vs. Caesars Entertainment | Table Trac 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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