Correlation Between Wynn Resorts and Las Vegas
Can any of the company-specific risk be diversified away by investing in both Wynn Resorts and Las Vegas 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 Las Vegas 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 Las Vegas Sands, you can compare the effects of market volatilities on Wynn Resorts and Las Vegas 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 Las Vegas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wynn Resorts and Las Vegas.
Diversification Opportunities for Wynn Resorts and Las Vegas
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wynn and Las is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Wynn Resorts Limited and Las Vegas Sands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Las Vegas Sands 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 Las Vegas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Las Vegas Sands has no effect on the direction of Wynn Resorts i.e., Wynn Resorts and Las Vegas go up and down completely randomly.
Pair Corralation between Wynn Resorts and Las Vegas
Assuming the 90 days horizon Wynn Resorts is expected to generate 1.15 times less return on investment than Las Vegas. In addition to that, Wynn Resorts is 1.09 times more volatile than Las Vegas Sands. It trades about 0.04 of its total potential returns per unit of risk. Las Vegas Sands is currently generating about 0.05 per unit of volatility. If you would invest 4,055 in Las Vegas Sands on September 2, 2024 and sell it today you would earn a total of 942.00 from holding Las Vegas Sands or generate 23.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wynn Resorts Limited vs. Las Vegas Sands
Performance |
| Timeline |
| Wynn Resorts Limited |
| Las Vegas Sands |
Wynn Resorts and Las Vegas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wynn Resorts and Las Vegas
The main advantage of trading using opposite Wynn Resorts and Las Vegas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wynn Resorts position performs unexpectedly, Las Vegas 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 Las Vegas will offset losses from the drop in Las Vegas' long position.| Wynn Resorts vs. Superior Plus Corp | Wynn Resorts vs. NMI Holdings | Wynn Resorts vs. Origin Agritech | Wynn Resorts vs. SIVERS SEMICONDUCTORS AB |
| Las Vegas vs. Retail Estates NV | Las Vegas vs. ATRESMEDIA | Las Vegas vs. XLMedia PLC | Las Vegas vs. LG Display Co |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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