Correlation Between Prosafe SE and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Prosafe SE 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 Prosafe SE and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosafe SE and Boyd Gaming, you can compare the effects of market volatilities on Prosafe SE 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 Prosafe SE with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosafe SE and Boyd Gaming.
Diversification Opportunities for Prosafe SE and Boyd Gaming
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Prosafe and Boyd is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Prosafe SE and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Prosafe SE 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 Prosafe SE 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 Prosafe SE i.e., Prosafe SE and Boyd Gaming go up and down completely randomly.
Pair Corralation between Prosafe SE and Boyd Gaming
Assuming the 90 days horizon Prosafe SE is expected to under-perform the Boyd Gaming. In addition to that, Prosafe SE is 2.15 times more volatile than Boyd Gaming. It trades about -0.21 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.05 per unit of volatility. If you would invest 5,794 in Boyd Gaming on September 1, 2024 and sell it today you would earn a total of 1,106 from holding Boyd Gaming or generate 19.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.48% |
| Values | Daily Returns |
Prosafe SE vs. Boyd Gaming
Performance |
| Timeline |
| Prosafe SE |
| Boyd Gaming |
Prosafe SE and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosafe SE and Boyd Gaming
The main advantage of trading using opposite Prosafe SE and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosafe SE 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.| Prosafe SE vs. Tenaris SA | Prosafe SE vs. Superior Plus Corp | Prosafe SE vs. NMI Holdings | Prosafe SE vs. Origin Agritech |
| Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |