Correlation Between Boyd Gaming and Imperial Metals
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Imperial Metals 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 Imperial Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Imperial Metals, you can compare the effects of market volatilities on Boyd Gaming and Imperial Metals 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 Imperial Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Imperial Metals.
Diversification Opportunities for Boyd Gaming and Imperial Metals
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boyd and Imperial is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Imperial Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imperial Metals 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 Imperial Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imperial Metals has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Imperial Metals go up and down completely randomly.
Pair Corralation between Boyd Gaming and Imperial Metals
Considering the 90-day investment horizon Boyd Gaming is expected to generate 0.92 times more return on investment than Imperial Metals. However, Boyd Gaming is 1.09 times less risky than Imperial Metals. It trades about 0.23 of its potential returns per unit of risk. Imperial Metals is currently generating about -0.13 per unit of risk. If you would invest 6,440 in Boyd Gaming on August 23, 2024 and sell it today you would earn a total of 736.00 from holding Boyd Gaming or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Boyd Gaming vs. Imperial Metals
Performance |
| Timeline |
| Boyd Gaming |
| Imperial Metals |
Boyd Gaming and Imperial Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Imperial Metals
The main advantage of trading using opposite Boyd Gaming and Imperial Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Imperial Metals 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 Imperial Metals will offset losses from the drop in Imperial Metals' 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 |
| Imperial Metals vs. Syrah Resources Limited | Imperial Metals vs. Nouveau Monde Graphite | Imperial Metals vs. Small Cap Core | Imperial Metals vs. Morningstar Unconstrained Allocation |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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