Correlation Between Boyd Gaming and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and GAMESTOP 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 GAMESTOP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and GAMESTOP, you can compare the effects of market volatilities on Boyd Gaming and GAMESTOP 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 GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and GAMESTOP.
Diversification Opportunities for Boyd Gaming and GAMESTOP
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boyd and GAMESTOP is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP 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 GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and GAMESTOP go up and down completely randomly.
Pair Corralation between Boyd Gaming and GAMESTOP
Assuming the 90 days trading horizon Boyd Gaming is expected to generate 4.27 times less return on investment than GAMESTOP. But when comparing it to its historical volatility, Boyd Gaming is 4.41 times less risky than GAMESTOP. It trades about 0.04 of its potential returns per unit of risk. GAMESTOP is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,063 in GAMESTOP on November 27, 2024 and sell it today you would earn a total of 335.00 from holding GAMESTOP or generate 16.24% 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. GAMESTOP
Performance |
| Timeline |
| Boyd Gaming |
| GAMESTOP |
Boyd Gaming and GAMESTOP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and GAMESTOP
The main advantage of trading using opposite Boyd Gaming and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, GAMESTOP 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 GAMESTOP will offset losses from the drop in GAMESTOP's long position.| Boyd Gaming vs. G III APPAREL GROUP | Boyd Gaming vs. Investment AB Latour | Boyd Gaming vs. MAANSHAN IRON H | Boyd Gaming vs. Guangdong Investment Limited |
| GAMESTOP vs. KENEDIX OFFICE INV | GAMESTOP vs. OFFICE DEPOT | GAMESTOP vs. Infrastrutture Wireless Italiane | GAMESTOP vs. Office Properties Income |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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