Correlation Between Boyd Gaming and Altimar Acquisition
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Altimar Acquisition 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 Altimar Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Altimar Acquisition Corp, you can compare the effects of market volatilities on Boyd Gaming and Altimar Acquisition 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 Altimar Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Altimar Acquisition.
Diversification Opportunities for Boyd Gaming and Altimar Acquisition
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Boyd and Altimar is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Altimar Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altimar Acquisition Corp 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 Altimar Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altimar Acquisition Corp has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Altimar Acquisition go up and down completely randomly.
Pair Corralation between Boyd Gaming and Altimar Acquisition
If you would invest 6,326 in Boyd Gaming on November 2, 2024 and sell it today you would earn a total of 1,339 from holding Boyd Gaming or generate 21.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Boyd Gaming vs. Altimar Acquisition Corp
Performance |
| Timeline |
| Boyd Gaming |
| Altimar Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boyd Gaming and Altimar Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Altimar Acquisition
The main advantage of trading using opposite Boyd Gaming and Altimar Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Altimar Acquisition 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 Altimar Acquisition will offset losses from the drop in Altimar Acquisition'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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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