Correlation Between Acumen Pharmaceuticals and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Acumen Pharmaceuticals 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 Acumen Pharmaceuticals and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acumen Pharmaceuticals and Boyd Gaming, you can compare the effects of market volatilities on Acumen Pharmaceuticals 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 Acumen Pharmaceuticals with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acumen Pharmaceuticals and Boyd Gaming.
Diversification Opportunities for Acumen Pharmaceuticals and Boyd Gaming
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Acumen and Boyd is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Acumen Pharmaceuticals and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Acumen Pharmaceuticals 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 Acumen Pharmaceuticals 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 Acumen Pharmaceuticals i.e., Acumen Pharmaceuticals and Boyd Gaming go up and down completely randomly.
Pair Corralation between Acumen Pharmaceuticals and Boyd Gaming
Given the investment horizon of 90 days Acumen Pharmaceuticals is expected to under-perform the Boyd Gaming. In addition to that, Acumen Pharmaceuticals is 3.22 times more volatile than Boyd Gaming. It trades about -0.01 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.02 per unit of volatility. If you would invest 6,778 in Boyd Gaming on August 31, 2024 and sell it today you would earn a total of 607.00 from holding Boyd Gaming or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acumen Pharmaceuticals vs. Boyd Gaming
Performance |
| Timeline |
| Acumen Pharmaceuticals |
| Boyd Gaming |
Acumen Pharmaceuticals and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acumen Pharmaceuticals and Boyd Gaming
The main advantage of trading using opposite Acumen Pharmaceuticals and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acumen Pharmaceuticals 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.| Acumen Pharmaceuticals vs. Terns Pharmaceuticals | Acumen Pharmaceuticals vs. X4 Pharmaceuticals | Acumen Pharmaceuticals vs. Day One Biopharmaceuticals | Acumen Pharmaceuticals vs. Hookipa Pharma |
| Boyd Gaming vs. MGM Resorts International | Boyd Gaming vs. Las Vegas Sands | Boyd Gaming vs. Wynn Resorts Limited | Boyd Gaming vs. Penn National Gaming |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |