Correlation Between Boyd Gaming and INFICON Holding
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and INFICON Holding 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 INFICON Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and INFICON Holding AG, you can compare the effects of market volatilities on Boyd Gaming and INFICON Holding 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 INFICON Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and INFICON Holding.
Diversification Opportunities for Boyd Gaming and INFICON Holding
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Boyd and INFICON is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and INFICON Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFICON Holding AG 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 INFICON Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFICON Holding AG has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and INFICON Holding go up and down completely randomly.
Pair Corralation between Boyd Gaming and INFICON Holding
Considering the 90-day investment horizon Boyd Gaming is expected to generate 1.59 times less return on investment than INFICON Holding. But when comparing it to its historical volatility, Boyd Gaming is 1.22 times less risky than INFICON Holding. It trades about 0.05 of its potential returns per unit of risk. INFICON Holding AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 72,109 in INFICON Holding AG on September 15, 2024 and sell it today you would earn a total of 53,891 from holding INFICON Holding AG or generate 74.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Gaming vs. INFICON Holding AG
Performance |
| Timeline |
| Boyd Gaming |
| INFICON Holding AG |
Boyd Gaming and INFICON Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and INFICON Holding
The main advantage of trading using opposite Boyd Gaming and INFICON Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, INFICON Holding 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 INFICON Holding will offset losses from the drop in INFICON Holding'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 |
| INFICON Holding vs. EvoAir Holdings | INFICON Holding vs. Coda Octopus Group | INFICON Holding vs. Westinghouse Air Brake | INFICON Holding vs. IPG Photonics |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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