Correlation Between Boyd Gaming and Harmony Gold
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Harmony Gold 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 Harmony Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Harmony Gold Mining, you can compare the effects of market volatilities on Boyd Gaming and Harmony Gold 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 Harmony Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Harmony Gold.
Diversification Opportunities for Boyd Gaming and Harmony Gold
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boyd and Harmony is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Harmony Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harmony Gold Mining 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 Harmony Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harmony Gold Mining has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Harmony Gold go up and down completely randomly.
Pair Corralation between Boyd Gaming and Harmony Gold
Assuming the 90 days trading horizon Boyd Gaming is expected to generate 28.05 times less return on investment than Harmony Gold. But when comparing it to its historical volatility, Boyd Gaming is 1.66 times less risky than Harmony Gold. It trades about 0.01 of its potential returns per unit of risk. Harmony Gold Mining is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 835.00 in Harmony Gold Mining on October 17, 2024 and sell it today you would earn a total of 45.00 from holding Harmony Gold Mining or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Gaming vs. Harmony Gold Mining
Performance |
| Timeline |
| Boyd Gaming |
| Harmony Gold Mining |
Boyd Gaming and Harmony Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Harmony Gold
The main advantage of trading using opposite Boyd Gaming and Harmony Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Harmony Gold 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 Harmony Gold will offset losses from the drop in Harmony Gold's long position.| Boyd Gaming vs. Easy Software AG | Boyd Gaming vs. FORMPIPE SOFTWARE AB | Boyd Gaming vs. ASURE SOFTWARE | Boyd Gaming vs. COMPUTERSHARE |
| Harmony Gold vs. CONTAGIOUS GAMING INC | Harmony Gold vs. Boyd Gaming | Harmony Gold vs. CRISPR Therapeutics AG | Harmony Gold vs. TROPHY GAMES DEV |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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