Correlation Between E Home and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both E Home 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 E Home and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Home Household Service and Boyd Gaming, you can compare the effects of market volatilities on E Home 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 E Home with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Home and Boyd Gaming.
Diversification Opportunities for E Home and Boyd Gaming
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EJH and Boyd is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding E Home Household Service and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and E Home 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 E Home Household Service 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 E Home i.e., E Home and Boyd Gaming go up and down completely randomly.
Pair Corralation between E Home and Boyd Gaming
Considering the 90-day investment horizon E Home Household Service is expected to under-perform the Boyd Gaming. In addition to that, E Home is 3.73 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 0.19 per unit of volatility. If you would invest 5,975 in Boyd Gaming on August 26, 2024 and sell it today you would earn a total of 1,258 from holding Boyd Gaming or generate 21.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Home Household Service vs. Boyd Gaming
Performance |
| Timeline |
| E Home Household |
| Boyd Gaming |
E Home and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Home and Boyd Gaming
The main advantage of trading using opposite E Home and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Home 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.| E Home vs. Smart Share Global | E Home vs. WW International | E Home vs. Frontdoor | E Home vs. Carriage Services |
| Boyd Gaming vs. MGM Resorts International | Boyd Gaming vs. Las Vegas Sands | Boyd Gaming vs. Wynn Resorts Limited | Boyd Gaming vs. Penn National Gaming |
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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |