Correlation Between Century Casinos and Full House

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

By analyzing existing cross correlation between Century Casinos and Full House Resorts, you can compare the effects of market volatilities on Century Casinos and Full House 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 Century Casinos with a short position of Full House. Check out your portfolio center. Please also check ongoing floating volatility patterns of Century Casinos and Full House.

Diversification Opportunities for Century Casinos and Full House

-0.27

Correlation Coefficient

Century Casinos  Full House

Very good diversification

The 3 months correlation between Century and Full is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Century Casinos and Full House Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Full House Resorts and Century Casinos 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 Century Casinos are associated (or correlated) with Full House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Full House Resorts has no effect on the direction of Century Casinos i.e., Century Casinos and Full House go up and down completely randomly.

Pair Corralation between Century Casinos and Full House

Given the investment horizon of 90 days Century Casinos is expected to generate 1.6 times more return on investment than Full House. However, Century Casinos is 1.6 times more volatile than Full House Resorts. It trades about 0.32 of its potential returns per unit of risk. Full House Resorts is currently generating about -0.13 per unit of risk. If you would invest  334.00  in Century Casinos on August 31, 2024 and sell it today you would earn a total of  113.00  from holding Century Casinos or generate 33.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Century Casinos  vs.  Full House Resorts

Century Casinos

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Century Casinos are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Century Casinos showed solid returns over the last few months and may actually be approaching a breakup point.

Full House Resorts

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Full House Resorts has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, Full House is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Century Casinos and Full House

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

The idea behind Century Casinos and Full House Resorts 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.