Correlation Between Boyd Gaming and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Proficient Auto 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 Proficient Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Proficient Auto Logistics,, you can compare the effects of market volatilities on Boyd Gaming and Proficient Auto 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 Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Proficient Auto.
Diversification Opportunities for Boyd Gaming and Proficient Auto
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boyd and Proficient is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Proficient Auto go up and down completely randomly.
Pair Corralation between Boyd Gaming and Proficient Auto
Considering the 90-day investment horizon Boyd Gaming is expected to generate 0.44 times more return on investment than Proficient Auto. However, Boyd Gaming is 2.28 times less risky than Proficient Auto. It trades about 0.17 of its potential returns per unit of risk. Proficient Auto Logistics, is currently generating about -0.06 per unit of risk. If you would invest 5,301 in Boyd Gaming on September 3, 2024 and sell it today you would earn a total of 2,084 from holding Boyd Gaming or generate 39.31% 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. Proficient Auto Logistics,
Performance |
| Timeline |
| Boyd Gaming |
| Proficient Auto Logi |
Boyd Gaming and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Proficient Auto
The main advantage of trading using opposite Boyd Gaming and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto'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 |
| Proficient Auto vs. Hawkins | Proficient Auto vs. Hudson Technologies | Proficient Auto vs. Zhihu Inc ADR | Proficient Auto vs. Avient 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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