Correlation Between Anthem and Golden Entertainment

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

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

Diversification Opportunities for Anthem and Golden Entertainment

-0.63

Correlation Coefficient

Anthem  Golden Entertainment

Excellent diversification

The 3 months correlation between Anthem and Golden is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Anthem Inc and Golden Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Entertainment and Anthem 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 Anthem Inc 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 Anthem i.e., Anthem and Golden Entertainment go up and down completely randomly.

Pair Corralation between Anthem and Golden Entertainment

Assuming the 90 days horizon Anthem Inc is expected to under-perform the Golden Entertainment. In addition to that, Anthem is 1.26 times more volatile than Golden Entertainment. It trades about -0.24 of its total potential returns per unit of risk. Golden Entertainment is currently generating about 0.07 per unit of volatility. If you would invest  2,241  in Golden Entertainment on April 24, 2025 and sell it today you would earn a total of  179.00  from holding Golden Entertainment or generate 7.99% return on investment over 90 days.

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

Anthem Inc  vs.  Golden Entertainment

Anthem Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Anthem Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Golden Entertainment

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Entertainment are ranked lower than 5 (%) 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 Anthem and Golden Entertainment

The main advantage of trading using opposite Anthem and Golden Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anthem 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 Anthem Inc 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.