Correlation Between Genting Singapore and Century Casinos

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

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

Diversification Opportunities for Genting Singapore and Century Casinos

-0.6

Correlation Coefficient

Genting Singapore  Century Casinos

Excellent diversification

The 3 months correlation between Genting and Century is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Genting Singapore PLC and Century Casinos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Casinos and Genting Singapore 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 Genting Singapore PLC are associated (or correlated) with Century Casinos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Casinos has no effect on the direction of Genting Singapore i.e., Genting Singapore and Century Casinos go up and down completely randomly.

Pair Corralation between Genting Singapore and Century Casinos

Assuming the 90 days horizon Genting Singapore PLC is expected to under-perform the Century Casinos. But the pink sheet apears to be less risky and, when comparing its historical volatility, Genting Singapore PLC is 1.85 times less risky than Century Casinos. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Century Casinos is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  458.00  in Century Casinos on September 14, 2024 and sell it today you would lose (73.00) from holding Century Casinos or give up 15.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	86.62%
Values	Daily Returns

Genting Singapore PLC  vs.  Century Casinos

Genting Singapore PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Genting Singapore PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Genting Singapore is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with Genting Singapore and Century Casinos

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

The idea behind Genting Singapore PLC and Century Casinos 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 CEOs Directory module to screen CEOs from public companies around the world.