Correlation Between Boyd Gaming and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Samsung Electronics 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 Samsung Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Samsung Electronics Co, you can compare the effects of market volatilities on Boyd Gaming and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Samsung Electronics.
Diversification Opportunities for Boyd Gaming and Samsung Electronics
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boyd and Samsung is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Samsung Electronics go up and down completely randomly.
Pair Corralation between Boyd Gaming and Samsung Electronics
Assuming the 90 days trading horizon Boyd Gaming is expected to generate 2.19 times less return on investment than Samsung Electronics. But when comparing it to its historical volatility, Boyd Gaming is 2.68 times less risky than Samsung Electronics. It trades about 0.16 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 72,400 in Samsung Electronics Co on September 14, 2024 and sell it today you would earn a total of 5,400 from holding Samsung Electronics Co or generate 7.46% 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. Samsung Electronics Co
Performance |
| Timeline |
| Boyd Gaming |
| Samsung Electronics |
Boyd Gaming and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Samsung Electronics
The main advantage of trading using opposite Boyd Gaming and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc |
| Samsung Electronics vs. Boyd Gaming | Samsung Electronics vs. Soken Chemical Engineering | Samsung Electronics vs. GAMESTOP | Samsung Electronics vs. CHEMICAL INDUSTRIES |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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