Correlation Between Las Vegas and ENTAIN PLC

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

By analyzing existing cross correlation between Las Vegas Sands and ENTAIN PLC UNSPADR1, you can compare the effects of market volatilities on Las Vegas and ENTAIN 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 Las Vegas with a short position of ENTAIN PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Las Vegas and ENTAIN PLC.

Diversification Opportunities for Las Vegas and ENTAIN PLC

0.9

Correlation Coefficient

Las Vegas  ENTAIN PLC

Almost no diversification

The 3 months correlation between Las and ENTAIN is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Las Vegas Sands and ENTAIN PLC UNSPADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTAIN PLC UNSPADR1 and Las Vegas 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 Las Vegas Sands are associated (or correlated) with ENTAIN PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTAIN PLC UNSPADR1 has no effect on the direction of Las Vegas i.e., Las Vegas and ENTAIN PLC go up and down completely randomly.

Pair Corralation between Las Vegas and ENTAIN PLC

Assuming the 90 days horizon Las Vegas Sands is expected to under-perform the ENTAIN PLC. But the stock apears to be less risky and, when comparing its historical volatility, Las Vegas Sands is 1.58 times less risky than ENTAIN PLC. The stock trades about -0.01 of its potential returns per unit of risk. The ENTAIN PLC UNSPADR1 is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  1,455  in ENTAIN PLC UNSPADR1 on April 20, 2025 and sell it today you would lose (365.00) from holding ENTAIN PLC UNSPADR1 or give up 25.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	99.8%
Values	Daily Returns

Las Vegas Sands  vs.  ENTAIN PLC UNSPADR1

Las Vegas Sands

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Las Vegas Sands are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Las Vegas reported solid returns over the last few months and may actually be approaching a breakup point.

ENTAIN PLC UNSPADR1

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in ENTAIN PLC UNSPADR1 are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, ENTAIN PLC reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Las Vegas and ENTAIN PLC

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

The idea behind Las Vegas Sands and ENTAIN PLC UNSPADR1 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.