Correlation Between Fluent and Boyd Gaming

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Can any of the company-specific risk be diversified away by investing in both Fluent 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 Fluent and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and Boyd Gaming, you can compare the effects of market volatilities on Fluent 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 Fluent with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and Boyd Gaming.

Diversification Opportunities for Fluent and Boyd Gaming

0.12
  Correlation Coefficient

Average diversification

The 3 months correlation between Fluent and Boyd is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Fluent 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 Fluent Inc 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 Fluent i.e., Fluent and Boyd Gaming go up and down completely randomly.

Pair Corralation between Fluent and Boyd Gaming

Given the investment horizon of 90 days Fluent is expected to generate 3.21 times less return on investment than Boyd Gaming. In addition to that, Fluent is 2.87 times more volatile than Boyd Gaming. It trades about 0.02 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.22 per unit of volatility. If you would invest  5,921  in Boyd Gaming on September 3, 2024 and sell it today you would earn a total of  1,464  from holding Boyd Gaming or generate 24.73% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Fluent Inc  vs.  Boyd Gaming

 Performance 
       Timeline  
Fluent Inc 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Fluent Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Fluent may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Boyd Gaming 

Risk-Adjusted Performance

17 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Boyd Gaming are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Boyd Gaming exhibited solid returns over the last few months and may actually be approaching a breakup point.

Fluent and Boyd Gaming Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fluent and Boyd Gaming

The main advantage of trading using opposite Fluent and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent 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.
The idea behind Fluent Inc and Boyd Gaming 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.
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.

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