Correlation Between Kenon Holdings and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Kenon Holdings 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 Kenon Holdings and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kenon Holdings and Boyd Gaming, you can compare the effects of market volatilities on Kenon Holdings 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 Kenon Holdings with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kenon Holdings and Boyd Gaming.
Diversification Opportunities for Kenon Holdings and Boyd Gaming
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kenon and Boyd is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Kenon Holdings and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Kenon Holdings 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 Kenon Holdings 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 Kenon Holdings i.e., Kenon Holdings and Boyd Gaming go up and down completely randomly.
Pair Corralation between Kenon Holdings and Boyd Gaming
Considering the 90-day investment horizon Kenon Holdings is expected to generate 1.22 times more return on investment than Boyd Gaming. However, Kenon Holdings is 1.22 times more volatile than Boyd Gaming. It trades about 0.05 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.02 per unit of risk. If you would invest 2,192 in Kenon Holdings on September 1, 2024 and sell it today you would earn a total of 793.00 from holding Kenon Holdings or generate 36.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kenon Holdings vs. Boyd Gaming
Performance |
| Timeline |
| Kenon Holdings |
| Boyd Gaming |
Kenon Holdings and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kenon Holdings and Boyd Gaming
The main advantage of trading using opposite Kenon Holdings and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kenon Holdings 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.| Kenon Holdings vs. Pampa Energia SA | Kenon Holdings vs. TransAlta Corp | Kenon Holdings vs. NRG Energy | Kenon Holdings vs. Power Assets Holdings |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |