Correlation Between TEN SQUARE and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both TEN SQUARE 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 TEN SQUARE and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEN SQUARE GAMES and Boyd Gaming, you can compare the effects of market volatilities on TEN SQUARE 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 TEN SQUARE with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEN SQUARE and Boyd Gaming.
Diversification Opportunities for TEN SQUARE and Boyd Gaming
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TEN and Boyd is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding TEN SQUARE GAMES and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and TEN SQUARE 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 TEN SQUARE GAMES 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 TEN SQUARE i.e., TEN SQUARE and Boyd Gaming go up and down completely randomly.
Pair Corralation between TEN SQUARE and Boyd Gaming
Assuming the 90 days horizon TEN SQUARE GAMES is expected to generate 1.25 times more return on investment than Boyd Gaming. However, TEN SQUARE is 1.25 times more volatile than Boyd Gaming. It trades about 0.23 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.18 per unit of risk. If you would invest 1,643 in TEN SQUARE GAMES on November 1, 2024 and sell it today you would earn a total of 135.00 from holding TEN SQUARE GAMES or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEN SQUARE GAMES vs. Boyd Gaming
Performance |
| Timeline |
| TEN SQUARE GAMES |
| Boyd Gaming |
TEN SQUARE and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEN SQUARE and Boyd Gaming
The main advantage of trading using opposite TEN SQUARE and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEN SQUARE 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.| TEN SQUARE vs. NEXON Co | TEN SQUARE vs. NEXON Co | TEN SQUARE vs. Take Two Interactive Software | TEN SQUARE vs. Aristocrat Leisure Limited |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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