Correlation Between Boyd Gaming and WillScot Mobile
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and WillScot Mobile 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 WillScot Mobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and WillScot Mobile Mini, you can compare the effects of market volatilities on Boyd Gaming and WillScot Mobile 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 WillScot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and WillScot Mobile.
Diversification Opportunities for Boyd Gaming and WillScot Mobile
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Boyd and WillScot is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and WillScot Mobile Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WillScot Mobile Mini 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 WillScot Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WillScot Mobile Mini has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and WillScot Mobile go up and down completely randomly.
Pair Corralation between Boyd Gaming and WillScot Mobile
Assuming the 90 days trading horizon Boyd Gaming is expected to generate 1.18 times less return on investment than WillScot Mobile. In addition to that, Boyd Gaming is 1.01 times more volatile than WillScot Mobile Mini. It trades about 0.37 of its total potential returns per unit of risk. WillScot Mobile Mini is currently generating about 0.44 per unit of volatility. If you would invest 3,200 in WillScot Mobile Mini on October 23, 2024 and sell it today you would earn a total of 320.00 from holding WillScot Mobile Mini or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Boyd Gaming vs. WillScot Mobile Mini
Performance |
| Timeline |
| Boyd Gaming |
| WillScot Mobile Mini |
Boyd Gaming and WillScot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and WillScot Mobile
The main advantage of trading using opposite Boyd Gaming and WillScot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, WillScot Mobile 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 WillScot Mobile will offset losses from the drop in WillScot Mobile's long position.| Boyd Gaming vs. HK Electric Investments | Boyd Gaming vs. VITEC SOFTWARE GROUP | Boyd Gaming vs. Magic Software Enterprises | Boyd Gaming vs. PennyMac Mortgage Investment |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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