Correlation Between Boyd Gaming and First Republic
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and First Republic 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 First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and First Republic Bank, you can compare the effects of market volatilities on Boyd Gaming and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and First Republic.
Diversification Opportunities for Boyd Gaming and First Republic
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boyd and First is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and First Republic go up and down completely randomly.
Pair Corralation between Boyd Gaming and First Republic
If you would invest 6,090 in Boyd Gaming on September 12, 2024 and sell it today you would earn a total of 1,401 from holding Boyd Gaming or generate 23.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Boyd Gaming vs. First Republic Bank
Performance |
| Timeline |
| Boyd Gaming |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boyd Gaming and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and First Republic
The main advantage of trading using opposite Boyd Gaming and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic'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 |
| First Republic vs. Getty Copper | First Republic vs. Boyd Gaming | First Republic vs. Hooker Furniture | First Republic vs. Lion One Metals |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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