Correlation Between Boyd Gaming and Viemed Healthcare
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Viemed Healthcare 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 Viemed Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Viemed Healthcare, you can compare the effects of market volatilities on Boyd Gaming and Viemed Healthcare 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 Viemed Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Viemed Healthcare.
Diversification Opportunities for Boyd Gaming and Viemed Healthcare
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boyd and Viemed is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Viemed Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viemed Healthcare 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 Viemed Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viemed Healthcare has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Viemed Healthcare go up and down completely randomly.
Pair Corralation between Boyd Gaming and Viemed Healthcare
Considering the 90-day investment horizon Boyd Gaming is expected to generate 0.56 times more return on investment than Viemed Healthcare. However, Boyd Gaming is 1.8 times less risky than Viemed Healthcare. It trades about 0.08 of its potential returns per unit of risk. Viemed Healthcare is currently generating about -0.09 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyd Gaming vs. Viemed Healthcare
Performance |
| Timeline |
| Boyd Gaming |
| Viemed Healthcare |
Boyd Gaming and Viemed Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyd Gaming and Viemed Healthcare
The main advantage of trading using opposite Boyd Gaming and Viemed Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Viemed Healthcare 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 Viemed Healthcare will offset losses from the drop in Viemed Healthcare'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 |
| Viemed Healthcare vs. Heartbeam | Viemed Healthcare vs. EUDA Health Holdings | Viemed Healthcare vs. Nutex Health | Viemed Healthcare vs. Healthcare Triangle |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |