Correlation Between Boyd Gaming and Fukuoka Financial
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Fukuoka Financial 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 Fukuoka Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Fukuoka Financial Group, you can compare the effects of market volatilities on Boyd Gaming and Fukuoka Financial 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 Fukuoka Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Fukuoka Financial.
Diversification Opportunities for Boyd Gaming and Fukuoka Financial
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boyd and Fukuoka is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Fukuoka Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fukuoka Financial 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 Fukuoka Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fukuoka Financial has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Fukuoka Financial go up and down completely randomly.
Pair Corralation between Boyd Gaming and Fukuoka Financial
Assuming the 90 days trading horizon Boyd Gaming is expected to generate 1.24 times more return on investment than Fukuoka Financial. However, Boyd Gaming is 1.24 times more volatile than Fukuoka Financial Group. It trades about 0.37 of its potential returns per unit of risk. Fukuoka Financial Group is currently generating about 0.25 per unit of risk. If you would invest 6,700 in Boyd Gaming on October 24, 2024 and sell it today you would earn a total of 600.00 from holding Boyd Gaming or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Boyd Gaming vs. Fukuoka Financial Group
Performance |
| Timeline |
| Boyd Gaming |
| Fukuoka Financial |
Boyd Gaming and Fukuoka Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Fukuoka Financial
The main advantage of trading using opposite Boyd Gaming and Fukuoka Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Fukuoka Financial 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 Fukuoka Financial will offset losses from the drop in Fukuoka Financial's long position.| Boyd Gaming vs. BII Railway Transportation | Boyd Gaming vs. JD SPORTS FASH | Boyd Gaming vs. UNIQA INSURANCE GR | Boyd Gaming vs. SPORT LISBOA E |
| Fukuoka Financial vs. THORNEY TECHS LTD | Fukuoka Financial vs. Cardinal Health | Fukuoka Financial vs. MPH Health Care | Fukuoka Financial vs. INTER CARS SA |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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