Correlation Between STMicroelectronics and Las Vegas

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

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

Diversification Opportunities for STMicroelectronics and Las Vegas

0.0

Correlation Coefficient

STMicroelectronics  Las Vegas

Pay attention - limited upside

The 3 months correlation between STMicroelectronics and Las is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STMicroelectronics NV and Las Vegas Sands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Las Vegas Sands and STMicroelectronics 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 STMicroelectronics NV 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 Sands has no effect on the direction of STMicroelectronics i.e., STMicroelectronics and Las Vegas go up and down completely randomly.

Pair Corralation between STMicroelectronics and Las Vegas

If you would invest (100.00) in Las Vegas Sands on May 14, 2025 and sell it today you would earn a total of  100.00  from holding Las Vegas Sands 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

STMicroelectronics NV  vs.  Las Vegas Sands

STMicroelectronics

Risk-Adjusted Performance

Weakest

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

Las Vegas Sands

Risk-Adjusted Performance

Good

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

Pair Trading with STMicroelectronics and Las Vegas

The main advantage of trading using opposite STMicroelectronics and Las Vegas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STMicroelectronics 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 STMicroelectronics NV and Las Vegas Sands 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.