Correlation Between Grupe SAB and Las Vegas

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

By analyzing existing cross correlation between Grupe SAB de and Las Vegas Sands, you can compare the effects of market volatilities on Grupe SAB 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 Grupe SAB with a short position of Las Vegas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupe SAB and Las Vegas.

Diversification Opportunities for Grupe SAB and Las Vegas

0.0

Correlation Coefficient

Grupe SAB  Las Vegas

Pay attention - limited upside

The 3 months correlation between Grupe and Las is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grupe SAB de 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 Grupe SAB 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 Grupe SAB de 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 Grupe SAB i.e., Grupe SAB and Las Vegas go up and down completely randomly.

Pair Corralation between Grupe SAB and Las Vegas

If you would invest  3,285  in Grupe SAB de on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Grupe SAB de or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Grupe SAB de  vs.  Las Vegas Sands

Grupe SAB de

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grupe SAB de has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Grupe SAB is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Las Vegas Sands

Risk-Adjusted Performance

Very Weak

Over the last 90 days Las Vegas Sands has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Grupe SAB and Las Vegas

The main advantage of trading using opposite Grupe SAB and Las Vegas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupe SAB 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.

The idea behind Grupe SAB de and Las Vegas Sands 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.