Correlation Between Boyd Gaming and AUTOMATIC
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By analyzing existing cross correlation between Boyd Gaming and AUTOMATIC DATA PROCESSING, you can compare the effects of market volatilities on Boyd Gaming and AUTOMATIC 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 AUTOMATIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and AUTOMATIC.
Diversification Opportunities for Boyd Gaming and AUTOMATIC
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boyd and AUTOMATIC is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and AUTOMATIC DATA PROCESSING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUTOMATIC DATA PROCESSING 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 AUTOMATIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUTOMATIC DATA PROCESSING has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and AUTOMATIC go up and down completely randomly.
Pair Corralation between Boyd Gaming and AUTOMATIC
Considering the 90-day investment horizon Boyd Gaming is expected to generate 1.38 times more return on investment than AUTOMATIC. However, Boyd Gaming is 1.38 times more volatile than AUTOMATIC DATA PROCESSING. It trades about 0.23 of its potential returns per unit of risk. AUTOMATIC DATA PROCESSING is currently generating about -0.12 per unit of risk. If you would invest 6,413 in Boyd Gaming on September 13, 2024 and sell it today you would earn a total of 1,144 from holding Boyd Gaming or generate 17.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.02% |
| Values | Daily Returns |
Boyd Gaming vs. AUTOMATIC DATA PROCESSING
Performance |
| Timeline |
| Boyd Gaming |
| AUTOMATIC DATA PROCESSING |
Boyd Gaming and AUTOMATIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and AUTOMATIC
The main advantage of trading using opposite Boyd Gaming and AUTOMATIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, AUTOMATIC 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 AUTOMATIC will offset losses from the drop in AUTOMATIC's long position.The idea behind Boyd Gaming and AUTOMATIC DATA PROCESSING pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AUTOMATIC vs. Biglari Holdings | AUTOMATIC vs. Boyd Gaming | AUTOMATIC vs. Magnite | AUTOMATIC vs. Dine Brands Global |
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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