Correlation Between Boyd Gaming and Sands China
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Sands China 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 Sands China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Sands China, you can compare the effects of market volatilities on Boyd Gaming and Sands China 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 Sands China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Sands China.
Diversification Opportunities for Boyd Gaming and Sands China
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boyd and Sands is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Sands China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sands China 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 Sands China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sands China has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Sands China go up and down completely randomly.
Pair Corralation between Boyd Gaming and Sands China
Assuming the 90 days horizon Boyd Gaming is expected to generate 0.67 times more return on investment than Sands China. However, Boyd Gaming is 1.5 times less risky than Sands China. It trades about 0.3 of its potential returns per unit of risk. Sands China is currently generating about -0.54 per unit of risk. If you would invest 6,750 in Boyd Gaming on October 20, 2024 and sell it today you would earn a total of 400.00 from holding Boyd Gaming or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Gaming vs. Sands China
Performance |
| Timeline |
| Boyd Gaming |
| Sands China |
Boyd Gaming and Sands China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Sands China
The main advantage of trading using opposite Boyd Gaming and Sands China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Sands China 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 Sands China will offset losses from the drop in Sands China's long position.| Boyd Gaming vs. Las Vegas Sands | Boyd Gaming vs. Galaxy Entertainment Group | Boyd Gaming vs. Sands China | Boyd Gaming vs. MGM Resorts International |
| Sands China vs. Las Vegas Sands | Sands China vs. Galaxy Entertainment Group | Sands China vs. MGM Resorts International | Sands China vs. Wynn Resorts Limited |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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