Correlation Between Monarch Casino and Vail Resorts

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

By analyzing existing cross correlation between Monarch Casino Resort and Vail Resorts, you can compare the effects of market volatilities on Monarch Casino and Vail 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 Monarch Casino with a short position of Vail Resorts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monarch Casino and Vail Resorts.

Diversification Opportunities for Monarch Casino and Vail Resorts

0.38

Correlation Coefficient

Monarch Casino  Vail Resorts

Weak diversification

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

Pair Corralation between Monarch Casino and Vail Resorts

Given the investment horizon of 90 days Monarch Casino Resort is expected to generate 1.37 times more return on investment than Vail Resorts. However, Monarch Casino is 1.37 times more volatile than Vail Resorts. It trades about 0.16 of its potential returns per unit of risk. Vail Resorts is currently generating about 0.07 per unit of risk. If you would invest  7,912  in Monarch Casino Resort on May 7, 2025 and sell it today you would earn a total of  2,229  from holding Monarch Casino Resort or generate 28.17% return on investment over 90 days.

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

Monarch Casino Resort  vs.  Vail Resorts

Monarch Casino Resort

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Monarch Casino Resort are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Monarch Casino demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Vail Resorts

Risk-Adjusted Performance

Mild

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

Pair Trading with Monarch Casino and Vail Resorts

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

The idea behind Monarch Casino Resort and Vail Resorts 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.