Correlation Between Boyd Gaming and NESTE OYJ
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and NESTE OYJ 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 NESTE OYJ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and NESTE OYJ UNSPADR, you can compare the effects of market volatilities on Boyd Gaming and NESTE OYJ 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 NESTE OYJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and NESTE OYJ.
Diversification Opportunities for Boyd Gaming and NESTE OYJ
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boyd and NESTE is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and NESTE OYJ UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESTE OYJ UNSPADR 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 NESTE OYJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESTE OYJ UNSPADR has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and NESTE OYJ go up and down completely randomly.
Pair Corralation between Boyd Gaming and NESTE OYJ
Assuming the 90 days trading horizon Boyd Gaming is expected to generate 1.87 times less return on investment than NESTE OYJ. But when comparing it to its historical volatility, Boyd Gaming is 2.54 times less risky than NESTE OYJ. It trades about 0.37 of its potential returns per unit of risk. NESTE OYJ UNSPADR is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 540.00 in NESTE OYJ UNSPADR on October 24, 2024 and sell it today you would earn a total of 95.00 from holding NESTE OYJ UNSPADR or generate 17.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Boyd Gaming vs. NESTE OYJ UNSPADR
Performance |
| Timeline |
| Boyd Gaming |
| NESTE OYJ UNSPADR |
Boyd Gaming and NESTE OYJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and NESTE OYJ
The main advantage of trading using opposite Boyd Gaming and NESTE OYJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, NESTE OYJ 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 NESTE OYJ will offset losses from the drop in NESTE OYJ's long position.| Boyd Gaming vs. BII Railway Transportation | Boyd Gaming vs. JD SPORTS FASH | Boyd Gaming vs. UNIQA INSURANCE GR | Boyd Gaming vs. SPORT LISBOA E |
| NESTE OYJ vs. Costco Wholesale Corp | NESTE OYJ vs. Burlington Stores | NESTE OYJ vs. Boyd Gaming | NESTE OYJ vs. PICKN PAY STORES |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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