Correlation Between NKSJ HOLDINGS and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both NKSJ HOLDINGS 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 NKSJ HOLDINGS and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NKSJ HOLDINGS and Boyd Gaming, you can compare the effects of market volatilities on NKSJ HOLDINGS 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 NKSJ HOLDINGS with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of NKSJ HOLDINGS and Boyd Gaming.
Diversification Opportunities for NKSJ HOLDINGS and Boyd Gaming
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NKSJ and Boyd is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding NKSJ HOLDINGS and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and NKSJ HOLDINGS 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 NKSJ HOLDINGS 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 NKSJ HOLDINGS i.e., NKSJ HOLDINGS and Boyd Gaming go up and down completely randomly.
Pair Corralation between NKSJ HOLDINGS and Boyd Gaming
Assuming the 90 days trading horizon NKSJ HOLDINGS is expected to generate 3.44 times more return on investment than Boyd Gaming. However, NKSJ HOLDINGS is 3.44 times more volatile than Boyd Gaming. It trades about 0.28 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.1 per unit of risk. If you would invest 2,100 in NKSJ HOLDINGS on September 12, 2024 and sell it today you would earn a total of 500.00 from holding NKSJ HOLDINGS or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
NKSJ HOLDINGS vs. Boyd Gaming
Performance |
| Timeline |
| NKSJ HOLDINGS |
| Boyd Gaming |
NKSJ HOLDINGS and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NKSJ HOLDINGS and Boyd Gaming
The main advantage of trading using opposite NKSJ HOLDINGS and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NKSJ HOLDINGS 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.| NKSJ HOLDINGS vs. BURLINGTON STORES | NKSJ HOLDINGS vs. MARKET VECTR RETAIL | NKSJ HOLDINGS vs. Transportadora de Gas | NKSJ HOLDINGS vs. Transport International Holdings |
| Boyd Gaming vs. Internet Thailand PCL | Boyd Gaming vs. Pembina Pipeline Corp | Boyd Gaming vs. Entravision Communications | Boyd Gaming vs. Sims Metal Management |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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