Correlation Between Boyd Gaming and Adyen NV
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Adyen NV 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 Adyen NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Adyen NV, you can compare the effects of market volatilities on Boyd Gaming and Adyen NV 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 Adyen NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Adyen NV.
Diversification Opportunities for Boyd Gaming and Adyen NV
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boyd and Adyen is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Adyen NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adyen NV 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 Adyen NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adyen NV has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Adyen NV go up and down completely randomly.
Pair Corralation between Boyd Gaming and Adyen NV
Assuming the 90 days trading horizon Boyd Gaming is expected to generate 0.64 times more return on investment than Adyen NV. However, Boyd Gaming is 1.56 times less risky than Adyen NV. It trades about 0.13 of its potential returns per unit of risk. Adyen NV is currently generating about -0.06 per unit of risk. If you would invest 6,600 in Boyd Gaming on August 29, 2024 and sell it today you would earn a total of 350.00 from holding Boyd Gaming or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Gaming vs. Adyen NV
Performance |
| Timeline |
| Boyd Gaming |
| Adyen NV |
Boyd Gaming and Adyen NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Adyen NV
The main advantage of trading using opposite Boyd Gaming and Adyen NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Adyen NV 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 Adyen NV will offset losses from the drop in Adyen NV's long position.| Boyd Gaming vs. TreeHouse Foods | Boyd Gaming vs. JJ SNACK FOODS | Boyd Gaming vs. Cal Maine Foods | Boyd Gaming vs. Performance Food Group |
| Adyen NV vs. QINGCI GAMES INC | Adyen NV vs. GigaMedia | Adyen NV vs. Boyd Gaming | Adyen NV vs. ULTRA CLEAN HLDGS |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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