Correlation Between First Ship and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both First Ship 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 First Ship and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and Boyd Gaming, you can compare the effects of market volatilities on First Ship 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 First Ship with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and Boyd Gaming.
Diversification Opportunities for First Ship and Boyd Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Boyd is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and First Ship 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 First Ship Lease 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 First Ship i.e., First Ship and Boyd Gaming go up and down completely randomly.
Pair Corralation between First Ship and Boyd Gaming
If you would invest 5,925 in Boyd Gaming on August 28, 2024 and sell it today you would earn a total of 1,374 from holding Boyd Gaming or generate 23.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Ship Lease vs. Boyd Gaming
Performance |
| Timeline |
| First Ship Lease |
| Boyd Gaming |
First Ship and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and Boyd Gaming
The main advantage of trading using opposite First Ship and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship 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.| First Ship vs. United Rentals | First Ship vs. AerCap Holdings NV | First Ship vs. Fortress Transp Infra | First Ship vs. U Haul Holding |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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