Correlation Between EIDESVIK OFFSHORE and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both EIDESVIK OFFSHORE and Boyd Gaming 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 EIDESVIK OFFSHORE and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EIDESVIK OFFSHORE NK and Boyd Gaming, you can compare the effects of market volatilities on EIDESVIK OFFSHORE and Boyd Gaming 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 EIDESVIK OFFSHORE with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIDESVIK OFFSHORE and Boyd Gaming.
Diversification Opportunities for EIDESVIK OFFSHORE and Boyd Gaming
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EIDESVIK and Boyd is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding EIDESVIK OFFSHORE NK and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE NK are associated (or correlated) with Boyd Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boyd Gaming has no effect on the direction of EIDESVIK OFFSHORE i.e., EIDESVIK OFFSHORE and Boyd Gaming go up and down completely randomly.
Pair Corralation between EIDESVIK OFFSHORE and Boyd Gaming
Assuming the 90 days horizon EIDESVIK OFFSHORE is expected to generate 3.48 times less return on investment than Boyd Gaming. In addition to that, EIDESVIK OFFSHORE is 1.44 times more volatile than Boyd Gaming. It trades about 0.06 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.31 per unit of volatility. If you would invest 6,750 in Boyd Gaming on October 20, 2024 and sell it today you would earn a total of 500.00 from holding Boyd Gaming or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EIDESVIK OFFSHORE NK vs. Boyd Gaming
Performance |
| Timeline |
| EIDESVIK OFFSHORE |
| Boyd Gaming |
EIDESVIK OFFSHORE and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIDESVIK OFFSHORE and Boyd Gaming
The main advantage of trading using opposite EIDESVIK OFFSHORE and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIDESVIK OFFSHORE position performs unexpectedly, Boyd Gaming 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 Boyd Gaming will offset losses from the drop in Boyd Gaming's long position.| EIDESVIK OFFSHORE vs. Strategic Education | EIDESVIK OFFSHORE vs. CEOTRONICS | EIDESVIK OFFSHORE vs. Ares Management Corp | EIDESVIK OFFSHORE vs. Cleanaway Waste Management |
| Boyd Gaming vs. DFS Furniture PLC | Boyd Gaming vs. OFFICE DEPOT | Boyd Gaming vs. Ubisoft Entertainment SA | Boyd Gaming vs. GigaMedia |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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