Melco Resorts Entertainment Stock Market Value
| MLCO Stock | USD 5.95 0.11 1.82% |
| Symbol | Melco |
Melco Resorts Entert Price To Book Ratio
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Melco Resorts. If investors know Melco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Melco Resorts listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 7.797 | Earnings Share (0.32) | Revenue Per Share 10.403 | Quarterly Revenue Growth 0.155 | Return On Assets 0.0375 |
The market value of Melco Resorts Entert is measured differently than its book value, which is the value of Melco that is recorded on the company's balance sheet. Investors also form their own opinion of Melco Resorts' value that differs from its market value or its book value, called intrinsic value, which is Melco Resorts' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Melco Resorts' market value can be influenced by many factors that don't directly affect Melco Resorts' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Melco Resorts' value and its price as these two are different measures arrived at by different means. Investors typically determine if Melco Resorts is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Melco Resorts' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Melco Resorts 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Melco Resorts' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Melco Resorts.
| 12/06/2022 |
| 11/25/2024 |
If you would invest 0.00 in Melco Resorts on December 6, 2022 and sell it all today you would earn a total of 0.00 from holding Melco Resorts Entertainment or generate 0.0% return on investment in Melco Resorts over 720 days. Melco Resorts is related to or competes with Wynn Resorts, MGM Resorts, Caesars Entertainment, Penn National, Las Vegas, Monarch Casino, and Golden Entertainment. Melco Resorts Entertainment Limited develops, owns, and operates casino gaming and resort facilities in Asia and Europe More
Melco Resorts Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Melco Resorts' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Melco Resorts Entertainment upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.73 | |||
| Information Ratio | 0.0059 | |||
| Maximum Drawdown | 22.74 | |||
| Value At Risk | (5.54) | |||
| Potential Upside | 5.17 |
Melco Resorts Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Melco Resorts' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Melco Resorts' standard deviation. In reality, there are many statistical measures that can use Melco Resorts historical prices to predict the future Melco Resorts' volatility.| Risk Adjusted Performance | 0.0414 | |||
| Jensen Alpha | 0.0367 | |||
| Total Risk Alpha | (0.40) | |||
| Sortino Ratio | 0.0075 | |||
| Treynor Ratio | 0.1633 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Melco Resorts' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Melco Resorts Entert Backtested Returns
Melco Resorts appears to be somewhat reliable, given 3 months investment horizon. Melco Resorts Entert has Sharpe Ratio of 0.0593, which conveys that the firm had a 0.0593% return per unit of risk over the last 3 months. We have found thirty technical indicators for Melco Resorts, which you can use to evaluate the volatility of the firm. Please exercise Melco Resorts' Mean Deviation of 2.3, downside deviation of 2.73, and Risk Adjusted Performance of 0.0414 to check out if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Melco Resorts holds a performance score of 4. The company secures a Beta (Market Risk) of 0.86, which conveys possible diversification benefits within a given portfolio. Melco Resorts returns are very sensitive to returns on the market. As the market goes up or down, Melco Resorts is expected to follow. Please check Melco Resorts' semi variance, and the relationship between the treynor ratio and daily balance of power , to make a quick decision on whether Melco Resorts' current price movements will revert.
Auto-correlation | 0.27 |
Poor predictability
Melco Resorts Entertainment has poor predictability. Overlapping area represents the amount of predictability between Melco Resorts time series from 6th of December 2022 to 1st of December 2023 and 1st of December 2023 to 25th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Melco Resorts Entert price movement. The serial correlation of 0.27 indicates that nearly 27.0% of current Melco Resorts price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.27 | |
| Spearman Rank Test | 0.43 | |
| Residual Average | 0.0 | |
| Price Variance | 1.22 |
Melco Resorts Entert lagged returns against current returns
Autocorrelation, which is Melco Resorts stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Melco Resorts' stock expected returns. We can calculate the autocorrelation of Melco Resorts returns to help us make a trade decision. For example, suppose you find that Melco Resorts has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Melco Resorts regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Melco Resorts stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Melco Resorts stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Melco Resorts stock over time.
Current vs Lagged Prices |
| Timeline |
Melco Resorts Lagged Returns
When evaluating Melco Resorts' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Melco Resorts stock have on its future price. Melco Resorts autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Melco Resorts autocorrelation shows the relationship between Melco Resorts stock current value and its past values and can show if there is a momentum factor associated with investing in Melco Resorts Entertainment.
Regressed Prices |
| Timeline |
Pair Trading with Melco Resorts
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Melco Resorts position performs unexpectedly, the other equity 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 Melco Resorts will appreciate offsetting losses from the drop in the long position's value.Moving against Melco Stock
The ability to find closely correlated positions to Melco Resorts could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Melco Resorts when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Melco Resorts - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Melco Resorts Entertainment to buy it.
The correlation of Melco Resorts is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Melco Resorts moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Melco Resorts Entert moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Melco Resorts can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Melco Resorts Correlation, Melco Resorts Volatility and Melco Resorts Alpha and Beta module to complement your research on Melco Resorts. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Melco Resorts technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.