Correlation Between Trip Group and Las Vegas

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Can any of the company-specific risk be diversified away by investing in both Trip Group and Las Vegas 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 Trip Group and Las Vegas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trip Group Limited and Las Vegas Sands, you can compare the effects of market volatilities on Trip Group and Las Vegas 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 Trip Group with a short position of Las Vegas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trip Group and Las Vegas.

Diversification Opportunities for Trip Group and Las Vegas

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Trip Group and Las Vegas

If you would invest (100.00) in Trip Group Limited on December 30, 2023 and sell it today you would earn a total of  100.00  from holding Trip Group Limited or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Trip Group Limited  vs.  Las Vegas Sands

 Performance 
       Timeline  
Trip Group Limited 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Trip Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Trip Group is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.
Las Vegas Sands 

Risk-Adjusted Performance

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Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Las Vegas Sands are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Trip Group and Las Vegas Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Trip Group and Las Vegas

The main advantage of trading using opposite Trip Group and Las Vegas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trip Group position performs unexpectedly, Las Vegas 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 Las Vegas will offset losses from the drop in Las Vegas' long position.
The idea behind Trip Group Limited and Las Vegas Sands 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 Transaction History module to view history of all your transactions and understand their impact on performance.

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