Correlation Between SkyCity Entertainment and Alumina

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

By analyzing existing cross correlation between SkyCity Entertainment Group and Alumina Limited, you can compare the effects of market volatilities on SkyCity Entertainment and Alumina 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 SkyCity Entertainment with a short position of Alumina. Check out your portfolio center. Please also check ongoing floating volatility patterns of SkyCity Entertainment and Alumina.

Diversification Opportunities for SkyCity Entertainment and Alumina

0.0

Correlation Coefficient

SkyCity Entertainment  Alumina

Pay attention - limited upside

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

Pair Corralation between SkyCity Entertainment and Alumina

If you would invest (100.00) in Alumina Limited on December 22, 2024 and sell it today you would earn a total of  100.00  from holding Alumina Limited or generate -100.0% return on investment over 90 days.

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

SkyCity Entertainment Group  vs.  Alumina Limited

SkyCity Entertainment

Risk-Adjusted Performance

Very Weak

Over the last 90 days SkyCity Entertainment Group 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.

Alumina Limited

Risk-Adjusted Performance

Very Weak

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

Pair Trading with SkyCity Entertainment and Alumina

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

The idea behind SkyCity Entertainment Group and Alumina Limited 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.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.