Correlation Between MOVIE GAMES and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES 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 MOVIE GAMES and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOVIE GAMES SA and Boyd Gaming, you can compare the effects of market volatilities on MOVIE GAMES 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 MOVIE GAMES with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and Boyd Gaming.
Diversification Opportunities for MOVIE GAMES and Boyd Gaming
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MOVIE and Boyd is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and MOVIE GAMES 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 MOVIE GAMES SA 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 MOVIE GAMES i.e., MOVIE GAMES and Boyd Gaming go up and down completely randomly.
Pair Corralation between MOVIE GAMES and Boyd Gaming
Assuming the 90 days horizon MOVIE GAMES SA is expected to generate 5.1 times more return on investment than Boyd Gaming. However, MOVIE GAMES is 5.1 times more volatile than Boyd Gaming. It trades about 0.2 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.31 per unit of risk. If you would invest 300.00 in MOVIE GAMES SA on October 20, 2024 and sell it today you would earn a total of 69.00 from holding MOVIE GAMES SA or generate 23.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOVIE GAMES SA vs. Boyd Gaming
Performance |
| Timeline |
| MOVIE GAMES SA |
| Boyd Gaming |
MOVIE GAMES and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and Boyd Gaming
The main advantage of trading using opposite MOVIE GAMES and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES 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.| MOVIE GAMES vs. GEELY AUTOMOBILE | MOVIE GAMES vs. Datadog | MOVIE GAMES vs. ELMOS SEMICONDUCTOR | MOVIE GAMES vs. Commercial Vehicle Group |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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