Correlation Between Caesars Entertainment, and Medtronic Plc

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

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

Diversification Opportunities for Caesars Entertainment, and Medtronic Plc

-0.28

Correlation Coefficient

Caesars Entertainment,  Medtronic Plc

Very good diversification

The 3 months correlation between Caesars and Medtronic is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Caesars Entertainment, and Medtronic plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medtronic plc and Caesars Entertainment, 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 Caesars Entertainment, are associated (or correlated) with Medtronic Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medtronic plc has no effect on the direction of Caesars Entertainment, i.e., Caesars Entertainment, and Medtronic Plc go up and down completely randomly.

Pair Corralation between Caesars Entertainment, and Medtronic Plc

Assuming the 90 days trading horizon Caesars Entertainment, is expected to generate 0.99 times more return on investment than Medtronic Plc. However, Caesars Entertainment, is 1.01 times less risky than Medtronic Plc. It trades about 0.09 of its potential returns per unit of risk. Medtronic plc is currently generating about 0.04 per unit of risk. If you would invest  1,515  in Caesars Entertainment, on April 20, 2025 and sell it today you would earn a total of  115.00  from holding Caesars Entertainment, or generate 7.59% return on investment over 90 days.

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

Caesars Entertainment,  vs.  Medtronic plc

Caesars Entertainment,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Caesars Entertainment, are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Caesars Entertainment, may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Medtronic plc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Medtronic plc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Medtronic Plc is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Caesars Entertainment, and Medtronic Plc

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

The idea behind Caesars Entertainment, and Medtronic plc 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.