Correlation Between Booking Holdings and Wynn Resorts
Can any of the company-specific risk be diversified away by investing in both Booking Holdings and Wynn Resorts 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 Booking Holdings and Wynn Resorts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Booking Holdings and Wynn Resorts Limited, you can compare the effects of market volatilities on Booking Holdings and Wynn Resorts 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 Booking Holdings with a short position of Wynn Resorts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Booking Holdings and Wynn Resorts.
Diversification Opportunities for Booking Holdings and Wynn Resorts
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Booking and Wynn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Booking Holdings and Wynn Resorts Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wynn Resorts Limited and Booking Holdings 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 Booking Holdings are associated (or correlated) with Wynn Resorts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wynn Resorts Limited has no effect on the direction of Booking Holdings i.e., Booking Holdings and Wynn Resorts go up and down completely randomly.
Pair Corralation between Booking Holdings and Wynn Resorts
If you would invest (100.00) in Booking Holdings on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Booking Holdings or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Booking Holdings vs. Wynn Resorts Limited
Performance |
Timeline |
Booking Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Wynn Resorts Limited |
Booking Holdings and Wynn Resorts Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Booking Holdings and Wynn Resorts
The main advantage of trading using opposite Booking Holdings and Wynn Resorts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Booking Holdings position performs unexpectedly, Wynn Resorts 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 Wynn Resorts will offset losses from the drop in Wynn Resorts' long position.Booking Holdings vs. Precision Drilling | Booking Holdings vs. AKITA Drilling | Booking Holdings vs. Alaska Air Group | Booking Holdings vs. Ryanair Holdings PLC |
Wynn Resorts vs. Imax Corp | Wynn Resorts vs. Marcus | Wynn Resorts vs. AMC Networks | Wynn Resorts vs. Cinemark Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |