Correlation Between Boyd Gaming and Pekin Life
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Pekin Life 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 Pekin Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Pekin Life Insurance, you can compare the effects of market volatilities on Boyd Gaming and Pekin Life 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 Pekin Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Pekin Life.
Diversification Opportunities for Boyd Gaming and Pekin Life
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boyd and Pekin is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Pekin Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pekin Life Insurance 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 Pekin Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pekin Life Insurance has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Pekin Life go up and down completely randomly.
Pair Corralation between Boyd Gaming and Pekin Life
Considering the 90-day investment horizon Boyd Gaming is expected to generate 1.03 times more return on investment than Pekin Life. However, Boyd Gaming is 1.03 times more volatile than Pekin Life Insurance. It trades about 0.04 of its potential returns per unit of risk. Pekin Life Insurance is currently generating about 0.01 per unit of risk. If you would invest 5,740 in Boyd Gaming on August 30, 2024 and sell it today you would earn a total of 1,570 from holding Boyd Gaming or generate 27.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Gaming vs. Pekin Life Insurance
Performance |
| Timeline |
| Boyd Gaming |
| Pekin Life Insurance |
Boyd Gaming and Pekin Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Pekin Life
The main advantage of trading using opposite Boyd Gaming and Pekin Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Pekin Life 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 Pekin Life will offset losses from the drop in Pekin Life'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 |
| Pekin Life vs. Invesco High Income | Pekin Life vs. Blackrock Muniholdings Ny | Pekin Life vs. Nuveen California Select | Pekin Life vs. MFS Investment Grade |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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