Correlation Between WIMFARM SA and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA 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 WIMFARM SA and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WIMFARM SA EO and Boyd Gaming, you can compare the effects of market volatilities on WIMFARM SA 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 WIMFARM SA with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and Boyd Gaming.
Diversification Opportunities for WIMFARM SA and Boyd Gaming
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WIMFARM and Boyd is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and WIMFARM SA 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 WIMFARM SA EO 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 WIMFARM SA i.e., WIMFARM SA and Boyd Gaming go up and down completely randomly.
Pair Corralation between WIMFARM SA and Boyd Gaming
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the Boyd Gaming. In addition to that, WIMFARM SA is 1.93 times more volatile than Boyd Gaming. It trades about -0.07 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.04 per unit of volatility. If you would invest 5,443 in Boyd Gaming on August 30, 2024 and sell it today you would earn a total of 1,457 from holding Boyd Gaming or generate 26.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. Boyd Gaming
Performance |
| Timeline |
| WIMFARM SA EO |
| Boyd Gaming |
WIMFARM SA and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and Boyd Gaming
The main advantage of trading using opposite WIMFARM SA and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA 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.| WIMFARM SA vs. Daimler Truck Holding | WIMFARM SA vs. Superior Plus Corp | WIMFARM SA vs. NMI Holdings | WIMFARM SA vs. Origin Agritech |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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