Correlation Between Boyd Gaming and Jiangsu Expressway
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Jiangsu Expressway 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 Jiangsu Expressway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Jiangsu Expressway Co, you can compare the effects of market volatilities on Boyd Gaming and Jiangsu Expressway 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 Jiangsu Expressway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Jiangsu Expressway.
Diversification Opportunities for Boyd Gaming and Jiangsu Expressway
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Boyd and Jiangsu is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Jiangsu Expressway Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Expressway 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 Jiangsu Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Expressway has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Jiangsu Expressway go up and down completely randomly.
Pair Corralation between Boyd Gaming and Jiangsu Expressway
Considering the 90-day investment horizon Boyd Gaming is expected to generate 0.44 times more return on investment than Jiangsu Expressway. However, Boyd Gaming is 2.25 times less risky than Jiangsu Expressway. It trades about 0.14 of its potential returns per unit of risk. Jiangsu Expressway Co is currently generating about -0.08 per unit of risk. If you would invest 6,936 in Boyd Gaming on August 26, 2024 and sell it today you would earn a total of 297.00 from holding Boyd Gaming or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Gaming vs. Jiangsu Expressway Co
Performance |
| Timeline |
| Boyd Gaming |
| Jiangsu Expressway |
Boyd Gaming and Jiangsu Expressway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Jiangsu Expressway
The main advantage of trading using opposite Boyd Gaming and Jiangsu Expressway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Jiangsu Expressway 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 Jiangsu Expressway will offset losses from the drop in Jiangsu Expressway'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 |
| Jiangsu Expressway vs. NETGEAR | Jiangsu Expressway vs. GMS Inc | Jiangsu Expressway vs. BBB Foods | Jiangsu Expressway vs. Western Digital |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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