Correlation Between TriMas and Monarch Casino

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

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

Diversification Opportunities for TriMas and Monarch Casino

0.09

Correlation Coefficient

TriMas  Monarch Casino

Significant diversification

The 3 months correlation between TriMas and Monarch is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding TriMas and Monarch Casino Resort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monarch Casino Resort and TriMas 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 TriMas are associated (or correlated) with Monarch Casino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monarch Casino Resort has no effect on the direction of TriMas i.e., TriMas and Monarch Casino go up and down completely randomly.

Pair Corralation between TriMas and Monarch Casino

Considering the 90-day investment horizon TriMas is expected to generate 1.07 times more return on investment than Monarch Casino. However, TriMas is 1.07 times more volatile than Monarch Casino Resort. It trades about 0.06 of its potential returns per unit of risk. Monarch Casino Resort is currently generating about -0.23 per unit of risk. If you would invest  3,873  in TriMas on July 27, 2025 and sell it today you would earn a total of  122.00  from holding TriMas or generate 3.15% return on investment over 90 days.

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

TriMas  vs.  Monarch Casino Resort

TriMas

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TriMas are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, TriMas unveiled solid returns over the last few months and may actually be approaching a breakup point.

Monarch Casino Resort

Risk-Adjusted Performance

Weakest

Over the last 90 days Monarch Casino Resort has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with TriMas and Monarch Casino

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

The idea behind TriMas and Monarch Casino Resort 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..