Correlation Between Banyan Tree and Wynn Macau
Can any of the company-specific risk be diversified away by investing in both Banyan Tree and Wynn Macau 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 Banyan Tree and Wynn Macau into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banyan Tree Holdings and Wynn Macau, you can compare the effects of market volatilities on Banyan Tree and Wynn Macau 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 Banyan Tree with a short position of Wynn Macau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banyan Tree and Wynn Macau.
Diversification Opportunities for Banyan Tree and Wynn Macau
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banyan and Wynn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Banyan Tree Holdings and Wynn Macau in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wynn Macau and Banyan Tree 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 Banyan Tree Holdings are associated (or correlated) with Wynn Macau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wynn Macau has no effect on the direction of Banyan Tree i.e., Banyan Tree and Wynn Macau go up and down completely randomly.
Pair Corralation between Banyan Tree and Wynn Macau
If you would invest 65.00 in Wynn Macau on December 28, 2024 and sell it today you would earn a total of 7.00 from holding Wynn Macau or generate 10.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 90.48% |
Values | Daily Returns |
Banyan Tree Holdings vs. Wynn Macau
Performance |
Timeline |
Banyan Tree Holdings |
Wynn Macau |
Banyan Tree and Wynn Macau Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Banyan Tree and Wynn Macau
The main advantage of trading using opposite Banyan Tree and Wynn Macau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banyan Tree position performs unexpectedly, Wynn Macau 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 Wynn Macau will offset losses from the drop in Wynn Macau's long position.Banyan Tree vs. Nagacorp | Banyan Tree vs. Wynn Macau | Banyan Tree vs. MGM China Holdings | Banyan Tree vs. Table Trac |
Wynn Macau vs. Banyan Tree Holdings | Wynn Macau vs. Nagacorp | Wynn Macau vs. MGM China Holdings | Wynn Macau vs. Table Trac |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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