Correlation Between Entain Plc and Golden Entertainment

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

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

Diversification Opportunities for Entain Plc and Golden Entertainment

0.74

Correlation Coefficient

Entain Plc  Golden Entertainment

Poor diversification

The 3 months correlation between Entain and Golden is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Entain Plc and Golden Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Entertainment and Entain Plc 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 Entain Plc are associated (or correlated) with Golden Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Entertainment has no effect on the direction of Entain Plc i.e., Entain Plc and Golden Entertainment go up and down completely randomly.

Pair Corralation between Entain Plc and Golden Entertainment

Assuming the 90 days horizon Entain Plc is expected to generate 1.21 times more return on investment than Golden Entertainment. However, Entain Plc is 1.21 times more volatile than Golden Entertainment. It trades about 0.32 of its potential returns per unit of risk. Golden Entertainment is currently generating about 0.06 per unit of risk. If you would invest  684.00  in Entain Plc on April 25, 2025 and sell it today you would earn a total of  467.00  from holding Entain Plc or generate 68.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Entain Plc  vs.  Golden Entertainment

Entain Plc

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Entain Plc are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Entain Plc reported solid returns over the last few months and may actually be approaching a breakup point.

Golden Entertainment

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Entertainment are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Golden Entertainment may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Entain Plc and Golden Entertainment

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

The idea behind Entain Plc and Golden Entertainment 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.