Correlation Between ENTAIN PLC and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both ENTAIN PLC 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 ENTAIN PLC and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENTAIN PLC UNSPADR1 and Boyd Gaming, you can compare the effects of market volatilities on ENTAIN PLC 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 ENTAIN PLC with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENTAIN PLC and Boyd Gaming.
Diversification Opportunities for ENTAIN PLC and Boyd Gaming
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ENTAIN and Boyd is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ENTAIN PLC UNSPADR1 and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and ENTAIN PLC 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 ENTAIN PLC UNSPADR1 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 ENTAIN PLC i.e., ENTAIN PLC and Boyd Gaming go up and down completely randomly.
Pair Corralation between ENTAIN PLC and Boyd Gaming
Assuming the 90 days trading horizon ENTAIN PLC UNSPADR1 is expected to generate 1.69 times more return on investment than Boyd Gaming. However, ENTAIN PLC is 1.69 times more volatile than Boyd Gaming. It trades about 0.27 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.12 per unit of risk. If you would invest 890.00 in ENTAIN PLC UNSPADR1 on September 12, 2024 and sell it today you would earn a total of 80.00 from holding ENTAIN PLC UNSPADR1 or generate 8.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ENTAIN PLC UNSPADR1 vs. Boyd Gaming
Performance |
| Timeline |
| ENTAIN PLC UNSPADR1 |
| Boyd Gaming |
ENTAIN PLC and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENTAIN PLC and Boyd Gaming
The main advantage of trading using opposite ENTAIN PLC and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENTAIN PLC 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.| ENTAIN PLC vs. Sands China | ENTAIN PLC vs. Superior Plus Corp | ENTAIN PLC vs. SIVERS SEMICONDUCTORS AB | ENTAIN PLC vs. Norsk Hydro ASA |
| Boyd Gaming vs. Sands China | Boyd Gaming vs. Superior Plus Corp | Boyd Gaming vs. SIVERS SEMICONDUCTORS AB | Boyd Gaming vs. Norsk Hydro ASA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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