Correlation Between ANGLER GAMING and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both ANGLER GAMING 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 ANGLER GAMING and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGLER GAMING PLC and Boyd Gaming, you can compare the effects of market volatilities on ANGLER GAMING 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 ANGLER GAMING with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGLER GAMING and Boyd Gaming.
Diversification Opportunities for ANGLER GAMING and Boyd Gaming
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ANGLER and Boyd is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding ANGLER GAMING PLC and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and ANGLER GAMING 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 ANGLER GAMING PLC 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 ANGLER GAMING i.e., ANGLER GAMING and Boyd Gaming go up and down completely randomly.
Pair Corralation between ANGLER GAMING and Boyd Gaming
Assuming the 90 days horizon ANGLER GAMING is expected to generate 1.81 times less return on investment than Boyd Gaming. In addition to that, ANGLER GAMING is 2.64 times more volatile than Boyd Gaming. It trades about 0.01 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.03 per unit of volatility. If you would invest 6,058 in Boyd Gaming on August 28, 2024 and sell it today you would earn a total of 892.00 from holding Boyd Gaming or generate 14.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANGLER GAMING PLC vs. Boyd Gaming
Performance |
| Timeline |
| ANGLER GAMING PLC |
| Boyd Gaming |
ANGLER GAMING and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGLER GAMING and Boyd Gaming
The main advantage of trading using opposite ANGLER GAMING and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGLER GAMING 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.| ANGLER GAMING vs. Charter Communications | ANGLER GAMING vs. Rogers Communications | ANGLER GAMING vs. GALENA MINING LTD | ANGLER GAMING vs. MINCO SILVER |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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