Correlation Between Boyd Gaming and Agnico Eagle
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Agnico Eagle 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 Agnico Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Agnico Eagle Mines, you can compare the effects of market volatilities on Boyd Gaming and Agnico Eagle 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 Agnico Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Agnico Eagle.
Diversification Opportunities for Boyd Gaming and Agnico Eagle
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Boyd and Agnico is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Agnico Eagle Mines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agnico Eagle Mines 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 Agnico Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agnico Eagle Mines has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Agnico Eagle go up and down completely randomly.
Pair Corralation between Boyd Gaming and Agnico Eagle
Considering the 90-day investment horizon Boyd Gaming is expected to generate 0.47 times more return on investment than Agnico Eagle. However, Boyd Gaming is 2.13 times less risky than Agnico Eagle. It trades about 0.15 of its potential returns per unit of risk. Agnico Eagle Mines is currently generating about -0.09 per unit of risk. If you would invest 7,039 in Boyd Gaming on August 31, 2024 and sell it today you would earn a total of 271.00 from holding Boyd Gaming or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Gaming vs. Agnico Eagle Mines
Performance |
| Timeline |
| Boyd Gaming |
| Agnico Eagle Mines |
Boyd Gaming and Agnico Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Agnico Eagle
The main advantage of trading using opposite Boyd Gaming and Agnico Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Agnico Eagle 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 Agnico Eagle will offset losses from the drop in Agnico Eagle's long position.| Boyd Gaming vs. MGM Resorts International | Boyd Gaming vs. Las Vegas Sands | Boyd Gaming vs. Wynn Resorts Limited | Boyd Gaming vs. Penn National Gaming |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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