Correlation Between Century Casinos and Table Trac

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

By analyzing existing cross correlation between Century Casinos and Table Trac, you can compare the effects of market volatilities on Century Casinos and Table Trac 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 Table Trac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Century Casinos and Table Trac.

Diversification Opportunities for Century Casinos and Table Trac

0.23

Correlation Coefficient

Century Casinos  Table Trac

Modest diversification

The 3 months correlation between Century and Table is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Century Casinos and Table Trac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Table Trac 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 Table Trac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Table Trac has no effect on the direction of Century Casinos i.e., Century Casinos and Table Trac go up and down completely randomly.

Pair Corralation between Century Casinos and Table Trac

Given the investment horizon of 90 days Century Casinos is expected to under-perform the Table Trac. In addition to that, Century Casinos is 1.08 times more volatile than Table Trac. It trades about -0.01 of its total potential returns per unit of risk. Table Trac is currently generating about 0.0 per unit of volatility. If you would invest  495.00  in Table Trac on September 14, 2024 and sell it today you would lose (101.00) from holding Table Trac or give up 20.4% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	93.54%
Values	Daily Returns

Century Casinos  vs.  Table Trac

Century Casinos

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Century Casinos are ranked lower than 16 (%) 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.

Table Trac

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Table Trac has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Table Trac is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Century Casinos and Table Trac

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

The idea behind Century Casinos and Table Trac 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.