Correlation Between Melco Crown and Melco Resorts
Can any of the company-specific risk be diversified away by investing in both Melco Crown and Melco Resorts 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 Melco Crown and Melco Resorts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Melco Crown Entertainment and Melco Resorts Entertainment, you can compare the effects of market volatilities on Melco Crown and Melco Resorts 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 Melco Crown with a short position of Melco Resorts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Melco Crown and Melco Resorts.
Diversification Opportunities for Melco Crown and Melco Resorts
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Melco and Melco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Melco Crown Entertainment and Melco Resorts Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Melco Resorts Entert and Melco Crown 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 Melco Crown Entertainment are associated (or correlated) with Melco Resorts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Melco Resorts Entert has no effect on the direction of Melco Crown i.e., Melco Crown and Melco Resorts go up and down completely randomly.
Pair Corralation between Melco Crown and Melco Resorts
If you would invest (100.00) in Melco Crown Entertainment on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Melco Crown Entertainment 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 |
Melco Crown Entertainment vs. Melco Resorts Entertainment
Performance |
| Timeline |
| Melco Crown Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Melco Resorts Entert |
Melco Crown and Melco Resorts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Melco Crown and Melco Resorts
The main advantage of trading using opposite Melco Crown and Melco Resorts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Melco Crown position performs unexpectedly, Melco Resorts 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 Melco Resorts will offset losses from the drop in Melco Resorts' long position.| Melco Crown vs. Emerson Radio | Melco Crown vs. Skyworks Solutions | Melco Crown vs. Amkor Technology | Melco Crown vs. Ecolab Inc |
| Melco Resorts vs. Wynn Resorts Limited | Melco Resorts vs. MGM Resorts International | Melco Resorts vs. Caesars Entertainment | Melco Resorts vs. Penn National Gaming |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |