Correlation Between Assurant and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Assurant 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 Assurant and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assurant and Boyd Gaming, you can compare the effects of market volatilities on Assurant 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 Assurant with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assurant and Boyd Gaming.
Diversification Opportunities for Assurant and Boyd Gaming
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Assurant and Boyd is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Assurant and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Assurant 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 Assurant 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 Assurant i.e., Assurant and Boyd Gaming go up and down completely randomly.
Pair Corralation between Assurant and Boyd Gaming
Considering the 90-day investment horizon Assurant is expected to generate 0.85 times more return on investment than Boyd Gaming. However, Assurant is 1.17 times less risky than Boyd Gaming. It trades about 0.08 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.04 per unit of risk. If you would invest 12,787 in Assurant on August 31, 2024 and sell it today you would earn a total of 9,918 from holding Assurant or generate 77.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assurant vs. Boyd Gaming
Performance |
| Timeline |
| Assurant |
| Boyd Gaming |
Assurant and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assurant and Boyd Gaming
The main advantage of trading using opposite Assurant and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assurant 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.| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact Holdings |
| 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.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |