Correlation Between COFCO Joycome and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and Boyd Gaming 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 COFCO Joycome and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and Boyd Gaming, you can compare the effects of market volatilities on COFCO Joycome and Boyd Gaming 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 COFCO Joycome with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and Boyd Gaming.
Diversification Opportunities for COFCO Joycome and Boyd Gaming
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between COFCO and Boyd is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and COFCO Joycome 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 COFCO Joycome Foods are associated (or correlated) with Boyd Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boyd Gaming has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and Boyd Gaming go up and down completely randomly.
Pair Corralation between COFCO Joycome and Boyd Gaming
Assuming the 90 days horizon COFCO Joycome Foods is expected to under-perform the Boyd Gaming. In addition to that, COFCO Joycome is 3.6 times more volatile than Boyd Gaming. It trades about -0.05 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.45 per unit of volatility. If you would invest 6,250 in Boyd Gaming on September 4, 2024 and sell it today you would earn a total of 750.00 from holding Boyd Gaming or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
COFCO Joycome Foods vs. Boyd Gaming
Performance |
| Timeline |
| COFCO Joycome Foods |
| Boyd Gaming |
COFCO Joycome and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and Boyd Gaming
The main advantage of trading using opposite COFCO Joycome and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, Boyd Gaming 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 Boyd Gaming will offset losses from the drop in Boyd Gaming's long position.| COFCO Joycome vs. Nestl SA | COFCO Joycome vs. Kraft Heinz Co | COFCO Joycome vs. General Mills | COFCO Joycome vs. Kellogg Company |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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