Correlation Between Boyd Gaming and SunLink Health
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and SunLink Health 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 SunLink Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and SunLink Health Systems, you can compare the effects of market volatilities on Boyd Gaming and SunLink Health 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 SunLink Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and SunLink Health.
Diversification Opportunities for Boyd Gaming and SunLink Health
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Boyd and SunLink is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and SunLink Health Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunLink Health Systems 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 SunLink Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunLink Health Systems has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and SunLink Health go up and down completely randomly.
Pair Corralation between Boyd Gaming and SunLink Health
Considering the 90-day investment horizon Boyd Gaming is expected to generate 0.31 times more return on investment than SunLink Health. However, Boyd Gaming is 3.22 times less risky than SunLink Health. It trades about 0.08 of its potential returns per unit of risk. SunLink Health Systems is currently generating about -0.18 per unit of risk. If you would invest 7,165 in Boyd Gaming on August 28, 2024 and sell it today you would earn a total of 134.00 from holding Boyd Gaming or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Gaming vs. SunLink Health Systems
Performance |
| Timeline |
| Boyd Gaming |
| SunLink Health Systems |
Boyd Gaming and SunLink Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and SunLink Health
The main advantage of trading using opposite Boyd Gaming and SunLink Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, SunLink Health 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 SunLink Health will offset losses from the drop in SunLink Health'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 |
| SunLink Health vs. Leafly Holdings | SunLink Health vs. Allstar Health Brands | SunLink Health vs. Leafly Holdings | SunLink Health vs. Kiaro Holdings 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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