Correlation Between Boyd Gaming and Portillos
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Portillos 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 Portillos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Portillos, you can compare the effects of market volatilities on Boyd Gaming and Portillos 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 Portillos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Portillos.
Diversification Opportunities for Boyd Gaming and Portillos
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boyd and Portillos is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Portillos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Portillos 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 Portillos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Portillos has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Portillos go up and down completely randomly.
Pair Corralation between Boyd Gaming and Portillos
Considering the 90-day investment horizon Boyd Gaming is expected to generate 0.66 times more return on investment than Portillos. However, Boyd Gaming is 1.52 times less risky than Portillos. It trades about 0.04 of its potential returns per unit of risk. Portillos is currently generating about -0.02 per unit of risk. If you would invest 5,495 in Boyd Gaming on August 31, 2024 and sell it today you would earn a total of 1,890 from holding Boyd Gaming or generate 34.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Gaming vs. Portillos
Performance |
| Timeline |
| Boyd Gaming |
| Portillos |
Boyd Gaming and Portillos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Portillos
The main advantage of trading using opposite Boyd Gaming and Portillos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Portillos 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 Portillos will offset losses from the drop in Portillos' 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 |
| Portillos vs. RLJ Lodging Trust | Portillos vs. Aquagold International | Portillos vs. Stepstone Group | Portillos vs. Morningstar Unconstrained Allocation |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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