Correlation Between Galaxy Entertainment and Sands China
Can any of the company-specific risk be diversified away by investing in both Galaxy Entertainment and Sands China 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 Galaxy Entertainment and Sands China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galaxy Entertainment Group and Sands China Ltd, you can compare the effects of market volatilities on Galaxy Entertainment and Sands China 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 Galaxy Entertainment with a short position of Sands China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Entertainment and Sands China.
Diversification Opportunities for Galaxy Entertainment and Sands China
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Galaxy and Sands is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Entertainment Group and Sands China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sands China and Galaxy Entertainment 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 Galaxy Entertainment Group are associated (or correlated) with Sands China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sands China has no effect on the direction of Galaxy Entertainment i.e., Galaxy Entertainment and Sands China go up and down completely randomly.
Pair Corralation between Galaxy Entertainment and Sands China
Assuming the 90 days horizon Galaxy Entertainment Group is expected to generate 3.06 times more return on investment than Sands China. However, Galaxy Entertainment is 3.06 times more volatile than Sands China Ltd. It trades about -0.01 of its potential returns per unit of risk. Sands China Ltd is currently generating about -0.06 per unit of risk. If you would invest 414.00 in Galaxy Entertainment Group on December 4, 2024 and sell it today you would lose (40.00) from holding Galaxy Entertainment Group or give up 9.66% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 68.33% |
Values | Daily Returns |
Galaxy Entertainment Group vs. Sands China Ltd
Performance |
Timeline |
Galaxy Entertainment |
Sands China |
Galaxy Entertainment and Sands China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Galaxy Entertainment and Sands China
The main advantage of trading using opposite Galaxy Entertainment and Sands China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Entertainment position performs unexpectedly, Sands China 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 Sands China will offset losses from the drop in Sands China's long position.Galaxy Entertainment vs. Chiba Bank Ltd | Galaxy Entertainment vs. Alto Neuroscience, | Galaxy Entertainment vs. Catalyst Pharmaceuticals | Galaxy Entertainment vs. Abcellera Biologics |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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