Correlation Between Boyd Gaming and Hafnia
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Hafnia 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 Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Hafnia Limited, you can compare the effects of market volatilities on Boyd Gaming and Hafnia 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 Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Hafnia.
Diversification Opportunities for Boyd Gaming and Hafnia
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boyd and Hafnia is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited 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 Hafnia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hafnia Limited has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Hafnia go up and down completely randomly.
Pair Corralation between Boyd Gaming and Hafnia
Considering the 90-day investment horizon Boyd Gaming is expected to generate 0.48 times more return on investment than Hafnia. However, Boyd Gaming is 2.09 times less risky than Hafnia. It trades about 0.08 of its potential returns per unit of risk. Hafnia Limited is currently generating about -0.06 per unit of risk. If you would invest 7,163 in Boyd Gaming on August 30, 2024 and sell it today you would earn a total of 147.00 from holding Boyd Gaming or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Gaming vs. Hafnia Limited
Performance |
| Timeline |
| Boyd Gaming |
| Hafnia Limited |
Boyd Gaming and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Hafnia
The main advantage of trading using opposite Boyd Gaming and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Hafnia 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 Hafnia will offset losses from the drop in Hafnia'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 |
| Hafnia vs. Old Dominion Freight | Hafnia vs. Organic Sales and | Hafnia vs. Saia Inc | Hafnia vs. Software Acquisition Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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