Correlation Between Boyd Gaming and International Game
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and International Game 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 International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and International Game Technology, you can compare the effects of market volatilities on Boyd Gaming and International Game 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 International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and International Game.
Diversification Opportunities for Boyd Gaming and International Game
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boyd and International is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and International Game go up and down completely randomly.
Pair Corralation between Boyd Gaming and International Game
Considering the 90-day investment horizon Boyd Gaming is expected to generate 0.7 times more return on investment than International Game. However, Boyd Gaming is 1.42 times less risky than International Game. It trades about 0.04 of its potential returns per unit of risk. International Game Technology is currently generating about -0.24 per unit of risk. If you would invest 7,165 in Boyd Gaming on August 27, 2024 and sell it today you would earn a total of 68.00 from holding Boyd Gaming or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Gaming vs. International Game Technology
Performance |
| Timeline |
| Boyd Gaming |
| International Game |
Boyd Gaming and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and International Game
The main advantage of trading using opposite Boyd Gaming and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game'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 |
| International Game vs. Accel Entertainment | International Game vs. PlayAGS | International Game vs. Everi Holdings | International Game vs. Light Wonder |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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