Correlation Between SkyCity Entertainment and Table Trac

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

Diversification Opportunities for SkyCity Entertainment and Table Trac

0.0

Correlation Coefficient

SkyCity Entertainment  Table Trac

Pay attention - limited upside

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

Pair Corralation between SkyCity Entertainment and Table Trac

If you would invest  397.00  in Table Trac on September 14, 2024 and sell it today you would lose (3.00) from holding Table Trac or give up 0.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

SkyCity Entertainment Group  vs.  Table Trac

SkyCity Entertainment

Risk-Adjusted Performance

0 of 100

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 nearly stable basic indicators, SkyCity Entertainment is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Table Trac

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Table Trac has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Table Trac is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SkyCity Entertainment and Table Trac

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

The idea behind SkyCity Entertainment Group and Table Trac 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.