Correlation Between Boyd Group and Centerra Gold
Can any of the company-specific risk be diversified away by investing in both Boyd Group and Centerra Gold 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 Group and Centerra Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Group Services and Centerra Gold, you can compare the effects of market volatilities on Boyd Group and Centerra Gold 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 Group with a short position of Centerra Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Group and Centerra Gold.
Diversification Opportunities for Boyd Group and Centerra Gold
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boyd and Centerra is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Group Services and Centerra Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centerra Gold and Boyd Group 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 Group Services are associated (or correlated) with Centerra Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centerra Gold has no effect on the direction of Boyd Group i.e., Boyd Group and Centerra Gold go up and down completely randomly.
Pair Corralation between Boyd Group and Centerra Gold
Assuming the 90 days trading horizon Boyd Group is expected to generate 11.96 times less return on investment than Centerra Gold. But when comparing it to its historical volatility, Boyd Group Services is 1.75 times less risky than Centerra Gold. It trades about 0.0 of its potential returns per unit of risk. Centerra Gold is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 658.00 in Centerra Gold on September 12, 2024 and sell it today you would earn a total of 192.00 from holding Centerra Gold or generate 29.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Group Services vs. Centerra Gold
Performance |
| Timeline |
| Boyd Group Services |
| Centerra Gold |
Boyd Group and Centerra Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Group and Centerra Gold
The main advantage of trading using opposite Boyd Group and Centerra Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Group position performs unexpectedly, Centerra Gold 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 Centerra Gold will offset losses from the drop in Centerra Gold's long position.| Boyd Group vs. Colliers International Group | Boyd Group vs. Premium Brands Holdings | Boyd Group vs. FirstService Corp | Boyd Group vs. Enghouse Systems |
| Centerra Gold vs. Alamos Gold | Centerra Gold vs. NovaGold Resources | Centerra Gold vs. Eldorado Gold Corp | Centerra Gold vs. IAMGold |
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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