Correlation Between Boyd Gaming and FOSTOURGRP
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and FOSTOURGRP 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 FOSTOURGRP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and FOSTOURGRP EO 0001, you can compare the effects of market volatilities on Boyd Gaming and FOSTOURGRP 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 FOSTOURGRP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and FOSTOURGRP.
Diversification Opportunities for Boyd Gaming and FOSTOURGRP
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boyd and FOSTOURGRP is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and FOSTOURGRP EO 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOSTOURGRP EO 0001 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 FOSTOURGRP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOSTOURGRP EO 0001 has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and FOSTOURGRP go up and down completely randomly.
Pair Corralation between Boyd Gaming and FOSTOURGRP
Assuming the 90 days trading horizon Boyd Gaming is expected to generate 1.27 times less return on investment than FOSTOURGRP. But when comparing it to its historical volatility, Boyd Gaming is 1.76 times less risky than FOSTOURGRP. It trades about 0.28 of its potential returns per unit of risk. FOSTOURGRP EO 0001 is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 41.00 in FOSTOURGRP EO 0001 on September 3, 2024 and sell it today you would earn a total of 5.00 from holding FOSTOURGRP EO 0001 or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Boyd Gaming vs. FOSTOURGRP EO 0001
Performance |
| Timeline |
| Boyd Gaming |
| FOSTOURGRP EO 0001 |
Boyd Gaming and FOSTOURGRP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and FOSTOURGRP
The main advantage of trading using opposite Boyd Gaming and FOSTOURGRP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, FOSTOURGRP 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 FOSTOURGRP will offset losses from the drop in FOSTOURGRP's long position.| Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc |
| FOSTOURGRP vs. Thai Beverage Public | FOSTOURGRP vs. Gladstone Investment | FOSTOURGRP vs. MOLSON RS BEVERAGE | FOSTOURGRP vs. REINET INVESTMENTS SCA |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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