Correlation Between Boyd Gaming and Mativ Holdings
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Mativ Holdings 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 Mativ Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Mativ Holdings, you can compare the effects of market volatilities on Boyd Gaming and Mativ Holdings 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 Mativ Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Mativ Holdings.
Diversification Opportunities for Boyd Gaming and Mativ Holdings
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boyd and Mativ is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Mativ Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mativ Holdings 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 Mativ Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mativ Holdings has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Mativ Holdings go up and down completely randomly.
Pair Corralation between Boyd Gaming and Mativ Holdings
Considering the 90-day investment horizon Boyd Gaming is expected to generate 0.46 times more return on investment than Mativ Holdings. However, Boyd Gaming is 2.18 times less risky than Mativ Holdings. It trades about 0.05 of its potential returns per unit of risk. Mativ Holdings is currently generating about -0.01 per unit of risk. If you would invest 5,358 in Boyd Gaming on September 12, 2024 and sell it today you would earn a total of 2,133 from holding Boyd Gaming or generate 39.81% 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. Mativ Holdings
Performance |
| Timeline |
| Boyd Gaming |
| Mativ Holdings |
Boyd Gaming and Mativ Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Mativ Holdings
The main advantage of trading using opposite Boyd Gaming and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Mativ Holdings 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 Mativ Holdings will offset losses from the drop in Mativ Holdings' long position.| Boyd Gaming vs. MGM Resorts International | Boyd Gaming vs. Las Vegas Sands | Boyd Gaming vs. Wynn Resorts Limited | Boyd Gaming vs. Melco Resorts Entertainment |
| Mativ Holdings vs. Orion Engineered Carbons | Mativ Holdings vs. Select Energy Services | Mativ Holdings vs. Perimeter Solutions SA | Mativ Holdings vs. FutureFuel Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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