Correlation Between Ballys Corp and Golden Entertainment

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

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

Diversification Opportunities for Ballys Corp and Golden Entertainment

-0.2

Correlation Coefficient

Ballys Corp  Golden Entertainment

Good diversification

The 3 months correlation between Ballys and Golden is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ballys Corp and Golden Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Entertainment and Ballys Corp 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 Ballys Corp are associated (or correlated) with Golden Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Entertainment has no effect on the direction of Ballys Corp i.e., Ballys Corp and Golden Entertainment go up and down completely randomly.

Pair Corralation between Ballys Corp and Golden Entertainment

Given the investment horizon of 90 days Ballys Corp is expected to under-perform the Golden Entertainment. In addition to that, Ballys Corp is 1.87 times more volatile than Golden Entertainment. It trades about -0.07 of its total potential returns per unit of risk. Golden Entertainment is currently generating about 0.07 per unit of volatility. If you would invest  2,545  in Golden Entertainment on May 6, 2025 and sell it today you would earn a total of  216.00  from holding Golden Entertainment or generate 8.49% return on investment over 90 days.

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

Ballys Corp  vs.  Golden Entertainment

Ballys Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ballys Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Golden Entertainment

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Entertainment are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Golden Entertainment may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Ballys Corp and Golden Entertainment

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

The idea behind Ballys Corp and Golden Entertainment 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 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.