Correlation Between ORMAT TECHNOLOGIES and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ORMAT TECHNOLOGIES and Boyd Gaming, you can compare the effects of market volatilities on ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of ORMAT TECHNOLOGIES and Boyd Gaming.
Diversification Opportunities for ORMAT TECHNOLOGIES and Boyd Gaming
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ORMAT and Boyd is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding ORMAT TECHNOLOGIES and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES 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 ORMAT TECHNOLOGIES i.e., ORMAT TECHNOLOGIES and Boyd Gaming go up and down completely randomly.
Pair Corralation between ORMAT TECHNOLOGIES and Boyd Gaming
Assuming the 90 days trading horizon ORMAT TECHNOLOGIES is expected to generate 27.88 times less return on investment than Boyd Gaming. But when comparing it to its historical volatility, ORMAT TECHNOLOGIES is 1.09 times less risky than Boyd Gaming. It trades about 0.0 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 6,191 in Boyd Gaming on August 31, 2024 and sell it today you would earn a total of 709.00 from holding Boyd Gaming or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ORMAT TECHNOLOGIES vs. Boyd Gaming
Performance |
| Timeline |
| ORMAT TECHNOLOGIES |
| Boyd Gaming |
ORMAT TECHNOLOGIES and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ORMAT TECHNOLOGIES and Boyd Gaming
The main advantage of trading using opposite ORMAT TECHNOLOGIES and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ORMAT TECHNOLOGIES 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.| ORMAT TECHNOLOGIES vs. SIVERS SEMICONDUCTORS AB | ORMAT TECHNOLOGIES vs. Darden Restaurants | ORMAT TECHNOLOGIES vs. Reliance Steel Aluminum | ORMAT TECHNOLOGIES vs. Q2M Managementberatung AG |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |