Correlation Between GENTING SG and Wynn Resorts

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

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

Diversification Opportunities for GENTING SG and Wynn Resorts

0.28

Correlation Coefficient

GENTING SG  Wynn Resorts

Modest diversification

The 3 months correlation between GENTING and Wynn is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding GENTING SG LTD 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 GENTING SG 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 GENTING SG LTD 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 GENTING SG i.e., GENTING SG and Wynn Resorts go up and down completely randomly.

Pair Corralation between GENTING SG and Wynn Resorts

Assuming the 90 days horizon GENTING SG LTD is expected to under-perform the Wynn Resorts. But the stock apears to be less risky and, when comparing its historical volatility, GENTING SG LTD is 1.11 times less risky than Wynn Resorts. The stock trades about -0.01 of its potential returns per unit of risk. The Wynn Resorts Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  9,255  in Wynn Resorts Limited on August 5, 2025 and sell it today you would earn a total of  1,043  from holding Wynn Resorts Limited or generate 11.27% return on investment over 90 days.

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

GENTING SG LTD  vs.  Wynn Resorts Limited

GENTING SG LTD

Risk-Adjusted Performance

Weakest

Over the last 90 days GENTING SG LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, GENTING SG is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Wynn Resorts Limited

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Wynn Resorts Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Wynn Resorts may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with GENTING SG and Wynn Resorts

The main advantage of trading using opposite GENTING SG and Wynn Resorts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENTING SG 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.

The idea behind GENTING SG LTD and Wynn Resorts Limited 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.