Correlation Between Lion One and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Lion One 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 Lion One and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and Boyd Gaming, you can compare the effects of market volatilities on Lion One 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 Lion One with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Boyd Gaming.
Diversification Opportunities for Lion One and Boyd Gaming
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lion and Boyd is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Lion One 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 Lion One Metals 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 Lion One i.e., Lion One and Boyd Gaming go up and down completely randomly.
Pair Corralation between Lion One and Boyd Gaming
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Boyd Gaming. In addition to that, Lion One is 1.75 times more volatile than Boyd Gaming. It trades about -0.01 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.22 per unit of volatility. If you would invest 5,921 in Boyd Gaming on September 2, 2024 and sell it today you would earn a total of 1,464 from holding Boyd Gaming or generate 24.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. Boyd Gaming
Performance |
| Timeline |
| Lion One Metals |
| Boyd Gaming |
Lion One and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Boyd Gaming
The main advantage of trading using opposite Lion One and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One 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.| Lion One vs. Irving Resources | Lion One vs. Headwater Gold | Lion One vs. Novo Resources Corp | Lion One vs. Snowline Gold Corp |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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