Correlation Between Monarch Casino and A SPAC

Can any of the company-specific risk be diversified away by investing in both Monarch Casino and A SPAC 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 Monarch Casino and A SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Monarch Casino Resort and A SPAC I, you can compare the effects of market volatilities on Monarch Casino and A SPAC 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 Monarch Casino with a short position of A SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monarch Casino and A SPAC.

Diversification Opportunities for Monarch Casino and A SPAC

0.0

Correlation Coefficient

Monarch Casino  A SPAC

Pay attention - limited upside

The 3 months correlation between Monarch and ASCA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Monarch Casino Resort and A SPAC I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC I and Monarch Casino 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 Monarch Casino Resort are associated (or correlated) with A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC I has no effect on the direction of Monarch Casino i.e., Monarch Casino and A SPAC go up and down completely randomly.

Pair Corralation between Monarch Casino and A SPAC

If you would invest  7,783  in Monarch Casino Resort on December 27, 2024 and sell it today you would earn a total of  330.00  from holding Monarch Casino Resort or generate 4.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Monarch Casino Resort  vs.  A SPAC I

Monarch Casino Resort

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Monarch Casino Resort are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Monarch Casino is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

A SPAC I

Risk-Adjusted Performance

Very Weak

Over the last 90 days A SPAC I has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, A SPAC is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Monarch Casino and A SPAC

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

The idea behind Monarch Casino Resort and A SPAC I 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.