Correlation Between Aterian and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Aterian 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 Aterian and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aterian and Boyd Gaming, you can compare the effects of market volatilities on Aterian 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 Aterian with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aterian and Boyd Gaming.
Diversification Opportunities for Aterian and Boyd Gaming
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aterian and Boyd is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Aterian and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Aterian 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 Aterian 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 Aterian i.e., Aterian and Boyd Gaming go up and down completely randomly.
Pair Corralation between Aterian and Boyd Gaming
Given the investment horizon of 90 days Aterian is expected to generate 10.18 times less return on investment than Boyd Gaming. In addition to that, Aterian is 2.92 times more volatile than Boyd Gaming. It trades about 0.0 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.06 per unit of volatility. If you would invest 5,905 in Boyd Gaming on September 3, 2024 and sell it today you would earn a total of 1,480 from holding Boyd Gaming or generate 25.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aterian vs. Boyd Gaming
Performance |
| Timeline |
| Aterian |
| Boyd Gaming |
Aterian and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aterian and Boyd Gaming
The main advantage of trading using opposite Aterian and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aterian 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.The idea behind Aterian and Boyd Gaming pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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