Correlation Between Sixt Leasing and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing 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 Sixt Leasing and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt Leasing SE and Boyd Gaming, you can compare the effects of market volatilities on Sixt Leasing 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 Sixt Leasing with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and Boyd Gaming.
Diversification Opportunities for Sixt Leasing and Boyd Gaming
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sixt and Boyd is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Sixt Leasing 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 Sixt Leasing SE 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 Sixt Leasing i.e., Sixt Leasing and Boyd Gaming go up and down completely randomly.
Pair Corralation between Sixt Leasing and Boyd Gaming
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the Boyd Gaming. But the stock apears to be less risky and, when comparing its historical volatility, Sixt Leasing SE is 1.31 times less risky than Boyd Gaming. The stock trades about -0.06 of its potential returns per unit of risk. The Boyd Gaming is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 4,908 in Boyd Gaming on September 3, 2024 and sell it today you would earn a total of 1,992 from holding Boyd Gaming or generate 40.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. Boyd Gaming
Performance |
| Timeline |
| Sixt Leasing SE |
| Boyd Gaming |
Sixt Leasing and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and Boyd Gaming
The main advantage of trading using opposite Sixt Leasing and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing 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.| Sixt Leasing vs. Harmony Gold Mining | Sixt Leasing vs. Motorcar Parts of | Sixt Leasing vs. Zijin Mining Group | Sixt Leasing vs. Jacquet Metal Service |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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