Correlation Between Boyd Gaming and Tuniu Corp
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Tuniu 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 Tuniu 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 Tuniu Corp, you can compare the effects of market volatilities on Boyd Gaming and Tuniu 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 Tuniu Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Tuniu Corp.
Diversification Opportunities for Boyd Gaming and Tuniu Corp
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boyd and Tuniu is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Tuniu Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuniu 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 Tuniu Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuniu Corp has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Tuniu Corp go up and down completely randomly.
Pair Corralation between Boyd Gaming and Tuniu Corp
Considering the 90-day investment horizon Boyd Gaming is expected to generate 0.5 times more return on investment than Tuniu Corp. However, Boyd Gaming is 2.01 times less risky than Tuniu Corp. It trades about 0.43 of its potential returns per unit of risk. Tuniu Corp is currently generating about 0.06 per unit of risk. If you would invest 7,183 in Boyd Gaming on November 2, 2024 and sell it today you would earn a total of 598.00 from holding Boyd Gaming or generate 8.33% 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. Tuniu Corp
Performance |
| Timeline |
| Boyd Gaming |
| Tuniu Corp |
Boyd Gaming and Tuniu Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Tuniu Corp
The main advantage of trading using opposite Boyd Gaming and Tuniu Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Tuniu 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 Tuniu Corp will offset losses from the drop in Tuniu 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 |
| Tuniu Corp vs. TripAdvisor | Tuniu Corp vs. MakeMyTrip Limited | Tuniu Corp vs. Booking Holdings | Tuniu Corp vs. Despegar 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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