Correlation Between Boyd Gaming and MOVIE GAMES
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and MOVIE GAMES 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 MOVIE GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and MOVIE GAMES SA, you can compare the effects of market volatilities on Boyd Gaming and MOVIE GAMES 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 MOVIE GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and MOVIE GAMES.
Diversification Opportunities for Boyd Gaming and MOVIE GAMES
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boyd and MOVIE is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and MOVIE GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOVIE GAMES SA 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 MOVIE GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOVIE GAMES SA has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and MOVIE GAMES go up and down completely randomly.
Pair Corralation between Boyd Gaming and MOVIE GAMES
Assuming the 90 days trading horizon Boyd Gaming is expected to generate 3.32 times less return on investment than MOVIE GAMES. But when comparing it to its historical volatility, Boyd Gaming is 5.1 times less risky than MOVIE GAMES. It trades about 0.31 of its potential returns per unit of risk. MOVIE GAMES SA is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 300.00 in MOVIE GAMES SA on October 20, 2024 and sell it today you would earn a total of 69.00 from holding MOVIE GAMES SA or generate 23.0% 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. MOVIE GAMES SA
Performance |
| Timeline |
| Boyd Gaming |
| MOVIE GAMES SA |
Boyd Gaming and MOVIE GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and MOVIE GAMES
The main advantage of trading using opposite Boyd Gaming and MOVIE GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, MOVIE GAMES 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 MOVIE GAMES will offset losses from the drop in MOVIE GAMES's long position.| Boyd Gaming vs. DFS Furniture PLC | Boyd Gaming vs. OFFICE DEPOT | Boyd Gaming vs. Ubisoft Entertainment SA | Boyd Gaming vs. GigaMedia |
| MOVIE GAMES vs. GEELY AUTOMOBILE | MOVIE GAMES vs. Datadog | MOVIE GAMES vs. ELMOS SEMICONDUCTOR | MOVIE GAMES vs. Commercial Vehicle Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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