Correlation Between Boyd Gaming and MAG SILVER
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and MAG SILVER 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 MAG SILVER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and MAG SILVER, you can compare the effects of market volatilities on Boyd Gaming and MAG SILVER 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 MAG SILVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and MAG SILVER.
Diversification Opportunities for Boyd Gaming and MAG SILVER
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boyd and MAG is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and MAG SILVER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAG SILVER 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 MAG SILVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAG SILVER has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and MAG SILVER go up and down completely randomly.
Pair Corralation between Boyd Gaming and MAG SILVER
Assuming the 90 days trading horizon Boyd Gaming is expected to generate 2.03 times less return on investment than MAG SILVER. But when comparing it to its historical volatility, Boyd Gaming is 1.88 times less risky than MAG SILVER. It trades about 0.18 of its potential returns per unit of risk. MAG SILVER is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,315 in MAG SILVER on November 1, 2024 and sell it today you would earn a total of 141.00 from holding MAG SILVER or generate 10.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Boyd Gaming vs. MAG SILVER
Performance |
| Timeline |
| Boyd Gaming |
| MAG SILVER |
Boyd Gaming and MAG SILVER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and MAG SILVER
The main advantage of trading using opposite Boyd Gaming and MAG SILVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, MAG SILVER 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 MAG SILVER will offset losses from the drop in MAG SILVER's long position.| Boyd Gaming vs. Molson Coors Beverage | Boyd Gaming vs. Platinum Investment Management | Boyd Gaming vs. MOLSON RS BEVERAGE | Boyd Gaming vs. Suntory Beverage Food |
| MAG SILVER vs. Live Nation Entertainment | MAG SILVER vs. TOWNSQUARE MEDIA INC | MAG SILVER vs. RCS MediaGroup SpA | MAG SILVER vs. Granite Construction |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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