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 ASA 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
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eidesvik and Boyd is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Eidesvik Offshore ASA 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 ASA 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 trading horizon Eidesvik Offshore ASA is expected to under-perform the Boyd Gaming. In addition to that, Eidesvik Offshore is 1.5 times more volatile than Boyd Gaming. It trades about -0.07 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.24 per unit of volatility. If you would invest 6,950 in Boyd Gaming on November 2, 2024 and sell it today you would earn a total of 500.00 from holding Boyd Gaming or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eidesvik Offshore ASA vs. Boyd Gaming
Performance |
| Timeline |
| Eidesvik Offshore ASA |
| 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. TITANIUM TRANSPORTGROUP | Eidesvik Offshore vs. Ultra Clean Holdings | Eidesvik Offshore vs. CarsalesCom | Eidesvik Offshore vs. MUTUIONLINE |
| Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |