Correlation Between GigaMedia and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both GigaMedia 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 GigaMedia and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaMedia and Boyd Gaming, you can compare the effects of market volatilities on GigaMedia 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 GigaMedia with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaMedia and Boyd Gaming.
Diversification Opportunities for GigaMedia and Boyd Gaming
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GigaMedia and Boyd is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding GigaMedia and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and GigaMedia 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 GigaMedia 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 GigaMedia i.e., GigaMedia and Boyd Gaming go up and down completely randomly.
Pair Corralation between GigaMedia and Boyd Gaming
Assuming the 90 days trading horizon GigaMedia is expected to generate 1.23 times more return on investment than Boyd Gaming. However, GigaMedia is 1.23 times more volatile than Boyd Gaming. It trades about 0.19 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.14 per unit of risk. If you would invest 122.00 in GigaMedia on August 28, 2024 and sell it today you would earn a total of 11.00 from holding GigaMedia or generate 9.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigaMedia vs. Boyd Gaming
Performance |
| Timeline |
| GigaMedia |
| Boyd Gaming |
GigaMedia and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaMedia and Boyd Gaming
The main advantage of trading using opposite GigaMedia and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaMedia 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.| GigaMedia vs. EAT WELL INVESTMENT | GigaMedia vs. GEAR4MUSIC LS 10 | GigaMedia vs. PACIFIC ONLINE | GigaMedia vs. BOS BETTER ONLINE |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |