Correlation Between Boyd Gaming and Allergan Plc
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Allergan Plc 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 Allergan Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Allergan Plc, you can compare the effects of market volatilities on Boyd Gaming and Allergan Plc 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 Allergan Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Allergan Plc.
Diversification Opportunities for Boyd Gaming and Allergan Plc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boyd and Allergan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Allergan Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allergan Plc 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 Allergan Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allergan Plc has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Allergan Plc go up and down completely randomly.
Pair Corralation between Boyd Gaming and Allergan Plc
If you would invest 6,401 in Boyd Gaming on September 12, 2024 and sell it today you would earn a total of 1,090 from holding Boyd Gaming or generate 17.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Boyd Gaming vs. Allergan Plc
Performance |
| Timeline |
| Boyd Gaming |
| Allergan Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boyd Gaming and Allergan Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Allergan Plc
The main advantage of trading using opposite Boyd Gaming and Allergan Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Allergan Plc 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 Allergan Plc will offset losses from the drop in Allergan Plc's long position.| Boyd Gaming vs. MGM Resorts International | Boyd Gaming vs. Las Vegas Sands | Boyd Gaming vs. Wynn Resorts Limited | Boyd Gaming vs. Melco Resorts Entertainment |
| Allergan Plc vs. Kura Sushi USA | Allergan Plc vs. Awilco Drilling PLC | Allergan Plc vs. Shake Shack | Allergan Plc vs. Boyd Gaming |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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