Correlation Between Boyd Gaming and Pharmacia Corp
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Pharmacia Corp 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 Pharmacia Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Pharmacia Corp, you can compare the effects of market volatilities on Boyd Gaming and Pharmacia Corp 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 Pharmacia Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Pharmacia Corp.
Diversification Opportunities for Boyd Gaming and Pharmacia Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boyd and Pharmacia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Pharmacia Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pharmacia Corp 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 Pharmacia Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pharmacia Corp has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Pharmacia Corp go up and down completely randomly.
Pair Corralation between Boyd Gaming and Pharmacia Corp
If you would invest 7,120 in Boyd Gaming on October 21, 2024 and sell it today you would earn a total of 369.00 from holding Boyd Gaming or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Boyd Gaming vs. Pharmacia Corp
Performance |
| Timeline |
| Boyd Gaming |
| Pharmacia Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boyd Gaming and Pharmacia Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Pharmacia Corp
The main advantage of trading using opposite Boyd Gaming and Pharmacia Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Pharmacia Corp 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 Pharmacia Corp will offset losses from the drop in Pharmacia Corp'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 |
| Pharmacia Corp vs. NetEase | Pharmacia Corp vs. Hochschild Mining PLC | Pharmacia Corp vs. Tarsus Pharmaceuticals | Pharmacia Corp vs. Gamehost |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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