Correlation Between Ainsworth Game and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Ainsworth Game 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 Ainsworth Game and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ainsworth Game Technology and Boyd Gaming, you can compare the effects of market volatilities on Ainsworth Game 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 Ainsworth Game with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ainsworth Game and Boyd Gaming.
Diversification Opportunities for Ainsworth Game and Boyd Gaming
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ainsworth and Boyd is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ainsworth Game Technology and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Ainsworth Game 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 Ainsworth Game Technology 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 Ainsworth Game i.e., Ainsworth Game and Boyd Gaming go up and down completely randomly.
Pair Corralation between Ainsworth Game and Boyd Gaming
Assuming the 90 days horizon Ainsworth Game Technology is expected to under-perform the Boyd Gaming. In addition to that, Ainsworth Game is 1.76 times more volatile than Boyd Gaming. It trades about -0.17 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 7,165 in Boyd Gaming on August 27, 2024 and sell it today you would earn a total of 68.00 from holding Boyd Gaming or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ainsworth Game Technology vs. Boyd Gaming
Performance |
| Timeline |
| Ainsworth Game Technology |
| Boyd Gaming |
Ainsworth Game and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ainsworth Game and Boyd Gaming
The main advantage of trading using opposite Ainsworth Game and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ainsworth Game 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.| Ainsworth Game vs. Intema Solutions | Ainsworth Game vs. 888 Holdings | Ainsworth Game vs. Royal Wins | Ainsworth Game vs. Real Luck Group |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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