Correlation Between Boyd Gaming and Golden Matrix
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Golden Matrix 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 Golden Matrix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Golden Matrix Group, you can compare the effects of market volatilities on Boyd Gaming and Golden Matrix 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 Golden Matrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Golden Matrix.
Diversification Opportunities for Boyd Gaming and Golden Matrix
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boyd and Golden is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Golden Matrix Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Matrix Group 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 Golden Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Matrix Group has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Golden Matrix go up and down completely randomly.
Pair Corralation between Boyd Gaming and Golden Matrix
Considering the 90-day investment horizon Boyd Gaming is expected to generate 3.07 times less return on investment than Golden Matrix. But when comparing it to its historical volatility, Boyd Gaming is 3.22 times less risky than Golden Matrix. It trades about 0.03 of its potential returns per unit of risk. Golden Matrix Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 230.00 in Golden Matrix Group on August 26, 2024 and sell it today you would earn a total of 40.00 from holding Golden Matrix Group or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Gaming vs. Golden Matrix Group
Performance |
| Timeline |
| Boyd Gaming |
| Golden Matrix Group |
Boyd Gaming and Golden Matrix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Golden Matrix
The main advantage of trading using opposite Boyd Gaming and Golden Matrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Golden Matrix 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 Golden Matrix will offset losses from the drop in Golden Matrix's long position.The idea behind Boyd Gaming and Golden Matrix Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Golden Matrix vs. AEye Inc | Golden Matrix vs. Arqit Quantum Warrants | Golden Matrix vs. Xos Equity Warrants |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |