Correlation Between Lipocine and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Lipocine 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 Lipocine and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lipocine and Boyd Gaming, you can compare the effects of market volatilities on Lipocine 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 Lipocine with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lipocine and Boyd Gaming.
Diversification Opportunities for Lipocine and Boyd Gaming
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lipocine and Boyd is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Lipocine and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Lipocine 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 Lipocine 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 Lipocine i.e., Lipocine and Boyd Gaming go up and down completely randomly.
Pair Corralation between Lipocine and Boyd Gaming
Given the investment horizon of 90 days Lipocine is expected to generate 2.9 times more return on investment than Boyd Gaming. However, Lipocine is 2.9 times more volatile than Boyd Gaming. It trades about 0.03 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.04 per unit of risk. If you would invest 536.00 in Lipocine on October 12, 2024 and sell it today you would lose (13.00) from holding Lipocine or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lipocine vs. Boyd Gaming
Performance |
| Timeline |
| Lipocine |
| Boyd Gaming |
Lipocine and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lipocine and Boyd Gaming
The main advantage of trading using opposite Lipocine and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lipocine 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.| Lipocine vs. Emergent Biosolutions | Lipocine vs. Bausch Health Companies | Lipocine vs. Neurocrine Biosciences | Lipocine vs. Teva Pharma Industries |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |