Correlation Between MGM Resorts and PFA Invest

By analyzing existing cross correlation between MGM Resorts International and PFA Invest Udenlandske, you can compare the effects of market volatilities on MGM Resorts and PFA Invest 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 MGM Resorts with a short position of PFA Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGM Resorts and PFA Invest.

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

Diversification Opportunities for MGM Resorts and PFA Invest

  Correlation Coefficient
MGM Resorts International
PFA Invest Udenlandske

Excellent diversification

The 3 months correlation between MGM Resorts and PFIUDO is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding MGM Resorts International and PFA Invest Udenlandske Obl in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on PFA Invest Udenlandske and MGM Resorts 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 MGM Resorts International are associated (or correlated) with PFA Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PFA Invest Udenlandske has no effect on the direction of MGM Resorts i.e. MGM Resorts and PFA Invest go up and down completely randomly.

Pair Corralation between MGM Resorts and PFA Invest

Considering the 30-days investment horizon, MGM Resorts International is expected to generate 14.08 times more return on investment than PFA Invest. However, MGM Resorts is 14.08 times more volatile than PFA Invest Udenlandske. It trades about 0.09 of its potential returns per unit of risk. PFA Invest Udenlandske is currently generating about 0.22 per unit of risk. If you would invest  1,363  in MGM Resorts International on June 6, 2020 and sell it today you would earn a total of  323.00  from holding MGM Resorts International or generate 23.7% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
ValuesDaily Returns

MGM Resorts International  vs.  PFA Invest Udenlandske Obl

 Performance (%) 
MGM Resorts International 

MGM Resorts Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in MGM Resorts International are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, MGM Resorts revealed solid returns over the last few months and may actually be approaching a breakup point.
PFA Invest Udenlandske 

PFA Invest Risk-Adjusted Performance

Over the last 30 days PFA Invest Udenlandske has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, PFA Invest is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.

MGM Resorts and PFA Invest Volatility Contrast

 Predicted Return Density 
Check out your portfolio center. Please also try Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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