Correlation Between Melco Resorts and Multilaser Industrial

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

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

Diversification Opportunities for Melco Resorts and Multilaser Industrial

-0.86

Correlation Coefficient

Melco Resorts  Multilaser Industrial

Pay attention - limited upside

The 3 months correlation between Melco and Multilaser is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Melco Resorts Entertainment and Multilaser Industrial SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multilaser Industrial and Melco 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 Melco Resorts Entertainment are associated (or correlated) with Multilaser Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multilaser Industrial has no effect on the direction of Melco Resorts i.e., Melco Resorts and Multilaser Industrial go up and down completely randomly.

Pair Corralation between Melco Resorts and Multilaser Industrial

Assuming the 90 days trading horizon Melco Resorts Entertainment is expected to generate 0.93 times more return on investment than Multilaser Industrial. However, Melco Resorts Entertainment is 1.08 times less risky than Multilaser Industrial. It trades about 0.17 of its potential returns per unit of risk. Multilaser Industrial SA is currently generating about -0.09 per unit of risk. If you would invest  1,414  in Melco Resorts Entertainment on April 20, 2025 and sell it today you would earn a total of  469.00  from holding Melco Resorts Entertainment or generate 33.17% return on investment over 90 days.

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

Melco Resorts Entertainment  vs.  Multilaser Industrial SA

Melco Resorts Entert

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Melco Resorts Entertainment are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Melco Resorts sustained solid returns over the last few months and may actually be approaching a breakup point.

Multilaser Industrial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Multilaser Industrial SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Melco Resorts and Multilaser Industrial

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

The idea behind Melco Resorts Entertainment and Multilaser Industrial SA 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.