Correlation Between Galaxy Entertainment and TSOGO SUN

Can any of the company-specific risk be diversified away by investing in both Galaxy Entertainment and TSOGO SUN 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 TSOGO SUN 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 TSOGO SUN GAMING, you can compare the effects of market volatilities on Galaxy Entertainment and TSOGO SUN 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 TSOGO SUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Entertainment and TSOGO SUN.

Diversification Opportunities for Galaxy Entertainment and TSOGO SUN

0.48

Correlation Coefficient

Galaxy Entertainment  TSOGO SUN

Very weak diversification

The 3 months correlation between Galaxy and TSOGO is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Entertainment Group and TSOGO SUN GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSOGO SUN GAMING 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 TSOGO SUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSOGO SUN GAMING has no effect on the direction of Galaxy Entertainment i.e., Galaxy Entertainment and TSOGO SUN go up and down completely randomly.

Pair Corralation between Galaxy Entertainment and TSOGO SUN

Assuming the 90 days trading horizon Galaxy Entertainment Group is expected to generate 0.82 times more return on investment than TSOGO SUN. However, Galaxy Entertainment Group is 1.22 times less risky than TSOGO SUN. It trades about -0.03 of its potential returns per unit of risk. TSOGO SUN GAMING is currently generating about -0.14 per unit of risk. If you would invest  402.00  in Galaxy Entertainment Group on December 29, 2024 and sell it today you would lose (22.00) from holding Galaxy Entertainment Group or give up 5.47% of portfolio value over 90 days.

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

Galaxy Entertainment Group  vs.  TSOGO SUN GAMING

Galaxy Entertainment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Galaxy Entertainment Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Galaxy Entertainment is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

TSOGO SUN GAMING

Risk-Adjusted Performance

Very Weak

Over the last 90 days TSOGO SUN GAMING has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Galaxy Entertainment and TSOGO SUN

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

The idea behind Galaxy Entertainment Group and TSOGO SUN GAMING 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.