Correlation Between Boyd Gaming and Postal Realty
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Postal Realty 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 Postal Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Postal Realty Trust, you can compare the effects of market volatilities on Boyd Gaming and Postal Realty 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 Postal Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Postal Realty.
Diversification Opportunities for Boyd Gaming and Postal Realty
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boyd and Postal is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Postal Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Realty Trust 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 Postal Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Realty Trust has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Postal Realty go up and down completely randomly.
Pair Corralation between Boyd Gaming and Postal Realty
Considering the 90-day investment horizon Boyd Gaming is expected to generate 0.96 times more return on investment than Postal Realty. However, Boyd Gaming is 1.04 times less risky than Postal Realty. It trades about 0.15 of its potential returns per unit of risk. Postal Realty Trust is currently generating about -0.09 per unit of risk. If you would invest 7,039 in Boyd Gaming on August 31, 2024 and sell it today you would earn a total of 271.00 from holding Boyd Gaming or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Boyd Gaming vs. Postal Realty Trust
Performance |
| Timeline |
| Boyd Gaming |
| Postal Realty Trust |
Boyd Gaming and Postal Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Postal Realty
The main advantage of trading using opposite Boyd Gaming and Postal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Postal Realty 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 Postal Realty will offset losses from the drop in Postal Realty'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 |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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