Correlation Between Accel Entertainment and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Accel Entertainment 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 Accel Entertainment and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accel Entertainment and Boyd Gaming, you can compare the effects of market volatilities on Accel Entertainment 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 Accel Entertainment with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accel Entertainment and Boyd Gaming.
Diversification Opportunities for Accel Entertainment and Boyd Gaming
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Accel and Boyd is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Accel Entertainment and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Accel Entertainment 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 Accel Entertainment 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 Accel Entertainment i.e., Accel Entertainment and Boyd Gaming go up and down completely randomly.
Pair Corralation between Accel Entertainment and Boyd Gaming
Given the investment horizon of 90 days Accel Entertainment is expected to generate 1.26 times less return on investment than Boyd Gaming. In addition to that, Accel Entertainment is 1.31 times more volatile than Boyd Gaming. It trades about 0.2 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.32 per unit of volatility. If you would invest 6,831 in Boyd Gaming on September 5, 2024 and sell it today you would earn a total of 570.00 from holding Boyd Gaming or generate 8.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accel Entertainment vs. Boyd Gaming
Performance |
| Timeline |
| Accel Entertainment |
| Boyd Gaming |
Accel Entertainment and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accel Entertainment and Boyd Gaming
The main advantage of trading using opposite Accel Entertainment and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accel Entertainment 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.| Accel Entertainment vs. Hyatt Hotels | Accel Entertainment vs. Smart Share Global | Accel Entertainment vs. Wyndham Hotels Resorts | Accel Entertainment vs. WW International |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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