Correlation Between Inter Parfums and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Inter Parfums 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 Inter Parfums and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Parfums and Boyd Gaming, you can compare the effects of market volatilities on Inter Parfums 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 Inter Parfums with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Parfums and Boyd Gaming.
Diversification Opportunities for Inter Parfums and Boyd Gaming
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inter and Boyd is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Inter Parfums and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Inter Parfums 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 Inter Parfums 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 Inter Parfums i.e., Inter Parfums and Boyd Gaming go up and down completely randomly.
Pair Corralation between Inter Parfums and Boyd Gaming
Given the investment horizon of 90 days Inter Parfums is expected to generate 1.26 times less return on investment than Boyd Gaming. In addition to that, Inter Parfums is 1.1 times more volatile than Boyd Gaming. It trades about 0.18 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.25 per unit of volatility. If you would invest 5,985 in Boyd Gaming on September 12, 2024 and sell it today you would earn a total of 1,580 from holding Boyd Gaming or generate 26.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inter Parfums vs. Boyd Gaming
Performance |
| Timeline |
| Inter Parfums |
| Boyd Gaming |
Inter Parfums and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Parfums and Boyd Gaming
The main advantage of trading using opposite Inter Parfums and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Parfums 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.| Inter Parfums vs. Edgewell Personal Care | Inter Parfums vs. Nu Skin Enterprises | Inter Parfums vs. Helen of Troy | Inter Parfums vs. European Wax Center |
| Boyd Gaming vs. Flanigans Enterprises | Boyd Gaming vs. Good Times Restaurants | Boyd Gaming vs. Auburn National Bancorporation |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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