Correlation Between Ballys Corp and CONSOLIDATED

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

By analyzing existing cross correlation between Ballys Corp and CONSOLIDATED EDISON N, you can compare the effects of market volatilities on Ballys Corp and CONSOLIDATED 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 CONSOLIDATED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ballys Corp and CONSOLIDATED.

Diversification Opportunities for Ballys Corp and CONSOLIDATED

-0.37

Correlation Coefficient

Ballys Corp  CONSOLIDATED

Very good diversification

The 3 months correlation between Ballys and CONSOLIDATED is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ballys Corp and CONSOLIDATED EDISON N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSOLIDATED EDISON 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 CONSOLIDATED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSOLIDATED EDISON has no effect on the direction of Ballys Corp i.e., Ballys Corp and CONSOLIDATED go up and down completely randomly.

Pair Corralation between Ballys Corp and CONSOLIDATED

Given the investment horizon of 90 days Ballys Corp is expected to generate 11.62 times more return on investment than CONSOLIDATED. However, Ballys Corp is 11.62 times more volatile than CONSOLIDATED EDISON N. It trades about 0.03 of its potential returns per unit of risk. CONSOLIDATED EDISON N is currently generating about 0.01 per unit of risk. If you would invest  1,775  in Ballys Corp on December 25, 2024 and sell it today you would lose (76.50) from holding Ballys Corp or give up 4.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	85.0%
Values	Daily Returns

Ballys Corp  vs.  CONSOLIDATED EDISON N

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 may actually be approaching a critical reversion point that can send shares even higher in April 2025.

CONSOLIDATED EDISON

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CONSOLIDATED EDISON N are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, CONSOLIDATED is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ballys Corp and CONSOLIDATED

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

The idea behind Ballys Corp and CONSOLIDATED EDISON N 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 Global Correlations module to find global opportunities by holding instruments from different markets.