Correlation Between Las Vegas and Hilton Grand

Can any of the company-specific risk be diversified away by investing in both Las Vegas and Hilton Grand 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 Las Vegas and Hilton Grand into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Las Vegas Sands and Hilton Grand Vacations, you can compare the effects of market volatilities on Las Vegas and Hilton Grand 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 Las Vegas with a short position of Hilton Grand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Las Vegas and Hilton Grand.

Diversification Opportunities for Las Vegas and Hilton Grand

-0.05

Correlation Coefficient

Las Vegas  Hilton Grand

Good diversification

The 3 months correlation between Las and Hilton is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Las Vegas Sands and Hilton Grand Vacations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilton Grand Vacations and Las Vegas 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 Las Vegas Sands are associated (or correlated) with Hilton Grand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilton Grand Vacations has no effect on the direction of Las Vegas i.e., Las Vegas and Hilton Grand go up and down completely randomly.

Pair Corralation between Las Vegas and Hilton Grand

Considering the 90-day investment horizon Las Vegas Sands is expected to generate 0.87 times more return on investment than Hilton Grand. However, Las Vegas Sands is 1.15 times less risky than Hilton Grand. It trades about 0.01 of its potential returns per unit of risk. Hilton Grand Vacations is currently generating about 0.0 per unit of risk. If you would invest  5,218  in Las Vegas Sands on October 3, 2024 and sell it today you would lose (82.00) from holding Las Vegas Sands or give up 1.57% of portfolio value over 90 days.

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

Las Vegas Sands  vs.  Hilton Grand Vacations

Las Vegas Sands

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Las Vegas Sands has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Las Vegas is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Hilton Grand Vacations

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hilton Grand Vacations are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Hilton Grand may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Las Vegas and Hilton Grand

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

The idea behind Las Vegas Sands and Hilton Grand Vacations 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.