Correlation Between A1 and Las Vegas

Can any of the company-specific risk be diversified away by investing in both A1 and Las Vegas 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 A1 and Las Vegas into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between A1 Group and Las Vegas Central, you can compare the effects of market volatilities on A1 and Las Vegas 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 A1 with a short position of Las Vegas. Check out your portfolio center. Please also check ongoing floating volatility patterns of A1 and Las Vegas.

Diversification Opportunities for A1 and Las Vegas

0.0

Correlation Coefficient

A1  Las Vegas

Pay attention - limited upside

The 3 months correlation between A1 and Las is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding A1 Group and Las Vegas Central in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Las Vegas Central and A1 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 A1 Group are associated (or correlated) with Las Vegas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Las Vegas Central has no effect on the direction of A1 i.e., A1 and Las Vegas go up and down completely randomly.

Pair Corralation between A1 and Las Vegas

If you would invest  0.24  in A1 Group on May 5, 2025 and sell it today you would earn a total of  0.23  from holding A1 Group or generate 95.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

A1 Group  vs.  Las Vegas Central

A1 Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in A1 Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, A1 displayed solid returns over the last few months and may actually be approaching a breakup point.

Las Vegas Central

Risk-Adjusted Performance

Very Weak

Over the last 90 days Las Vegas Central has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Las Vegas is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with A1 and Las Vegas

The main advantage of trading using opposite A1 and Las Vegas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A1 position performs unexpectedly, Las Vegas 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 Las Vegas will offset losses from the drop in Las Vegas' long position.

The idea behind A1 Group and Las Vegas Central 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.