Correlation Between Boyd Gaming and AW Revenue
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and AW Revenue 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 AW Revenue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and AW Revenue Royalties, you can compare the effects of market volatilities on Boyd Gaming and AW Revenue 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 AW Revenue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and AW Revenue.
Diversification Opportunities for Boyd Gaming and AW Revenue
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boyd and AWRRF is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and AW Revenue Royalties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AW Revenue Royalties 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 AW Revenue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AW Revenue Royalties has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and AW Revenue go up and down completely randomly.
Pair Corralation between Boyd Gaming and AW Revenue
Considering the 90-day investment horizon Boyd Gaming is expected to generate 2.41 times more return on investment than AW Revenue. However, Boyd Gaming is 2.41 times more volatile than AW Revenue Royalties. It trades about 0.2 of its potential returns per unit of risk. AW Revenue Royalties is currently generating about 0.33 per unit of risk. If you would invest 6,406 in Boyd Gaming on September 3, 2024 and sell it today you would earn a total of 979.00 from holding Boyd Gaming or generate 15.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 28.57% |
| Values | Daily Returns |
Boyd Gaming vs. AW Revenue Royalties
Performance |
| Timeline |
| Boyd Gaming |
| AW Revenue Royalties |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Boyd Gaming and AW Revenue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and AW Revenue
The main advantage of trading using opposite Boyd Gaming and AW Revenue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, AW Revenue 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 AW Revenue will offset losses from the drop in AW Revenue'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 |
| AW Revenue vs. Nasdaq Inc | AW Revenue vs. Kite Realty Group | AW Revenue vs. Freedom Holding Corp | AW Revenue vs. Papaya Growth Opportunity |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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