Correlation Between Boyd Gaming and MICROSOFT
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By analyzing existing cross correlation between Boyd Gaming and MICROSOFT PORATION, you can compare the effects of market volatilities on Boyd Gaming and MICROSOFT 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 MICROSOFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and MICROSOFT.
Diversification Opportunities for Boyd Gaming and MICROSOFT
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boyd and MICROSOFT is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and MICROSOFT PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICROSOFT PORATION 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 MICROSOFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICROSOFT PORATION has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and MICROSOFT go up and down completely randomly.
Pair Corralation between Boyd Gaming and MICROSOFT
Considering the 90-day investment horizon Boyd Gaming is expected to generate 1.55 times more return on investment than MICROSOFT. However, Boyd Gaming is 1.55 times more volatile than MICROSOFT PORATION. It trades about 0.05 of its potential returns per unit of risk. MICROSOFT PORATION is currently generating about 0.01 per unit of risk. If you would invest 5,384 in Boyd Gaming on September 14, 2024 and sell it today you would earn a total of 2,180 from holding Boyd Gaming or generate 40.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Boyd Gaming vs. MICROSOFT PORATION
Performance |
| Timeline |
| Boyd Gaming |
| MICROSOFT PORATION |
Boyd Gaming and MICROSOFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and MICROSOFT
The main advantage of trading using opposite Boyd Gaming and MICROSOFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, MICROSOFT 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 MICROSOFT will offset losses from the drop in MICROSOFT's long position.The idea behind Boyd Gaming and MICROSOFT PORATION 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.| MICROSOFT vs. Minerals Technologies | MICROSOFT vs. Precision Drilling | MICROSOFT vs. Griffon | MICROSOFT vs. AKITA Drilling |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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