Correlation Between Wynn Resorts and GENTING SG

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

By analyzing existing cross correlation between Wynn Resorts Limited and GENTING SG LTD, you can compare the effects of market volatilities on Wynn Resorts and GENTING SG 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 Wynn Resorts with a short position of GENTING SG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wynn Resorts and GENTING SG.

Diversification Opportunities for Wynn Resorts and GENTING SG

0.38

Correlation Coefficient

Wynn Resorts  GENTING SG

Weak diversification

The 3 months correlation between Wynn and GENTING is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Wynn Resorts Limited and GENTING SG LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENTING SG LTD and Wynn 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 Wynn Resorts Limited are associated (or correlated) with GENTING SG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENTING SG LTD has no effect on the direction of Wynn Resorts i.e., Wynn Resorts and GENTING SG go up and down completely randomly.

Pair Corralation between Wynn Resorts and GENTING SG

Assuming the 90 days horizon Wynn Resorts Limited is expected to generate 0.54 times more return on investment than GENTING SG. However, Wynn Resorts Limited is 1.84 times less risky than GENTING SG. It trades about 0.24 of its potential returns per unit of risk. GENTING SG LTD is currently generating about 0.04 per unit of risk. If you would invest  6,696  in Wynn Resorts Limited on April 20, 2025 and sell it today you would earn a total of  2,705  from holding Wynn Resorts Limited or generate 40.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Wynn Resorts Limited  vs.  GENTING SG LTD

Wynn Resorts Limited

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Wynn Resorts Limited are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Wynn Resorts reported solid returns over the last few months and may actually be approaching a breakup point.

GENTING SG LTD

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GENTING SG LTD are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, GENTING SG may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Wynn Resorts and GENTING SG

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

The idea behind Wynn Resorts Limited and GENTING SG LTD 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.