Correlation Between Boyd Gaming and Keyence
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Keyence 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 Keyence into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Keyence, you can compare the effects of market volatilities on Boyd Gaming and Keyence 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 Keyence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Keyence.
Diversification Opportunities for Boyd Gaming and Keyence
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Boyd and Keyence is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Keyence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyence 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 Keyence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyence has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Keyence go up and down completely randomly.
Pair Corralation between Boyd Gaming and Keyence
Assuming the 90 days trading horizon Boyd Gaming is expected to under-perform the Keyence. In addition to that, Boyd Gaming is 1.01 times more volatile than Keyence. It trades about -0.4 of its total potential returns per unit of risk. Keyence is currently generating about -0.13 per unit of volatility. If you would invest 39,540 in Keyence on December 11, 2024 and sell it today you would lose (1,620) from holding Keyence or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Gaming vs. Keyence
Performance |
| Timeline |
| Boyd Gaming |
| Keyence |
Boyd Gaming and Keyence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Keyence
The main advantage of trading using opposite Boyd Gaming and Keyence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Keyence 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 Keyence will offset losses from the drop in Keyence's long position.| Boyd Gaming vs. Automatic Data Processing | Boyd Gaming vs. Warner Music Group | Boyd Gaming vs. DATA MODUL | Boyd Gaming vs. SWISS WATER DECAFFCOFFEE |
| Keyence vs. GLG LIFE TECH | Keyence vs. SOFI TECHNOLOGIES | Keyence vs. PRECISION DRILLING P | Keyence vs. ASPEN TECHINC DL |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |