Correlation Between Boyd Gaming and NIKKON HOLDINGS
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and NIKKON HOLDINGS 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 NIKKON HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and NIKKON HOLDINGS TD, you can compare the effects of market volatilities on Boyd Gaming and NIKKON HOLDINGS 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 NIKKON HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and NIKKON HOLDINGS.
Diversification Opportunities for Boyd Gaming and NIKKON HOLDINGS
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boyd and NIKKON is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and NIKKON HOLDINGS TD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIKKON HOLDINGS TD 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 NIKKON HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIKKON HOLDINGS TD has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and NIKKON HOLDINGS go up and down completely randomly.
Pair Corralation between Boyd Gaming and NIKKON HOLDINGS
Assuming the 90 days trading horizon Boyd Gaming is expected to generate 1.21 times more return on investment than NIKKON HOLDINGS. However, Boyd Gaming is 1.21 times more volatile than NIKKON HOLDINGS TD. It trades about 0.07 of its potential returns per unit of risk. NIKKON HOLDINGS TD is currently generating about 0.07 per unit of risk. If you would invest 5,284 in Boyd Gaming on September 14, 2024 and sell it today you would earn a total of 1,866 from holding Boyd Gaming or generate 35.31% 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. NIKKON HOLDINGS TD
Performance |
| Timeline |
| Boyd Gaming |
| NIKKON HOLDINGS TD |
Boyd Gaming and NIKKON HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and NIKKON HOLDINGS
The main advantage of trading using opposite Boyd Gaming and NIKKON HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, NIKKON HOLDINGS 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 NIKKON HOLDINGS will offset losses from the drop in NIKKON HOLDINGS's long position.| Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc |
| NIKKON HOLDINGS vs. Dalata Hotel Group | NIKKON HOLDINGS vs. Meli Hotels International | NIKKON HOLDINGS vs. NH HOTEL GROUP | NIKKON HOLDINGS vs. Boyd 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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