Correlation Between Koala and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Koala 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 Koala and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koala and Boyd Gaming, you can compare the effects of market volatilities on Koala 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 Koala with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koala and Boyd Gaming.
Diversification Opportunities for Koala and Boyd Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Koala and Boyd is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Koala and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Koala 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 Koala 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 Koala i.e., Koala and Boyd Gaming go up and down completely randomly.
Pair Corralation between Koala and Boyd Gaming
If you would invest 5,822 in Boyd Gaming on September 3, 2024 and sell it today you would earn a total of 1,563 from holding Boyd Gaming or generate 26.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 7.88% |
| Values | Daily Returns |
Koala vs. Boyd Gaming
Performance |
| Timeline |
| Koala |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Boyd Gaming |
Koala and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koala and Boyd Gaming
The main advantage of trading using opposite Koala and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koala 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.| Koala vs. Boyd Gaming | Koala vs. KNOT Offshore Partners | Koala vs. BW Offshore Limited | Koala vs. Omni Health |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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