Correlation Between Ballys Corp and Beneficient

Can any of the company-specific risk be diversified away by investing in both Ballys Corp and Beneficient 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 Ballys Corp and Beneficient into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ballys Corp and Beneficient Class A, you can compare the effects of market volatilities on Ballys Corp and Beneficient 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 Ballys Corp with a short position of Beneficient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ballys Corp and Beneficient.

Diversification Opportunities for Ballys Corp and Beneficient

0.38

Correlation Coefficient

Ballys Corp  Beneficient

Weak diversification

The 3 months correlation between Ballys and Beneficient is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ballys Corp and Beneficient Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beneficient Class and Ballys Corp 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 Ballys Corp are associated (or correlated) with Beneficient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beneficient Class has no effect on the direction of Ballys Corp i.e., Ballys Corp and Beneficient go up and down completely randomly.

Pair Corralation between Ballys Corp and Beneficient

Given the investment horizon of 90 days Ballys Corp is expected to generate 1.43 times more return on investment than Beneficient. However, Ballys Corp is 1.43 times more volatile than Beneficient Class A. It trades about 0.03 of its potential returns per unit of risk. Beneficient Class A is currently generating about -0.18 per unit of risk. If you would invest  1,774  in Ballys Corp on December 21, 2024 and sell it today you would lose (67.00) from holding Ballys Corp or give up 3.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Ballys Corp  vs.  Beneficient Class A

Ballys Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ballys Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent essential indicators, Ballys Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Beneficient Class

Risk-Adjusted Performance

Very Weak

Over the last 90 days Beneficient Class A has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Ballys Corp and Beneficient

The main advantage of trading using opposite Ballys Corp and Beneficient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ballys Corp position performs unexpectedly, Beneficient 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 Beneficient will offset losses from the drop in Beneficient's long position.

The idea behind Ballys Corp and Beneficient Class A pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.