Correlation Between Boyd Gaming and GENTING SG
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and GENTING SG 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 Boyd Gaming and GENTING SG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and GENTING SG LTD, you can compare the effects of market volatilities on Boyd Gaming and GENTING SG 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 Boyd Gaming with a short position of GENTING SG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and GENTING SG.
Diversification Opportunities for Boyd Gaming and GENTING SG
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boyd and GENTING is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and GENTING SG LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENTING SG LTD and Boyd Gaming 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 Boyd Gaming are associated (or correlated) with GENTING SG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENTING SG LTD has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and GENTING SG go up and down completely randomly.
Pair Corralation between Boyd Gaming and GENTING SG
Assuming the 90 days horizon Boyd Gaming is expected to generate 0.77 times more return on investment than GENTING SG. However, Boyd Gaming is 1.29 times less risky than GENTING SG. It trades about 0.06 of its potential returns per unit of risk. GENTING SG LTD is currently generating about -0.01 per unit of risk. If you would invest 5,383 in Boyd Gaming on September 2, 2024 and sell it today you would earn a total of 1,517 from holding Boyd Gaming or generate 28.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Gaming vs. GENTING SG LTD
Performance |
| Timeline |
| Boyd Gaming |
| GENTING SG LTD |
Boyd Gaming and GENTING SG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and GENTING SG
The main advantage of trading using opposite Boyd Gaming and GENTING SG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, GENTING SG 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 GENTING SG will offset losses from the drop in GENTING SG's long position.| Boyd Gaming vs. National Retail Properties | Boyd Gaming vs. INFORMATION SVC GRP | Boyd Gaming vs. Pick n Pay | Boyd Gaming vs. DATANG INTL POW |
| GENTING SG vs. Neinor Homes SA | GENTING SG vs. HomeToGo SE | GENTING SG vs. MAVEN WIRELESS SWEDEN | GENTING SG vs. Autohome ADR |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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