Correlation Between Mayfair Gold and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Mayfair Gold 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 Mayfair Gold and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mayfair Gold Corp and Boyd Gaming, you can compare the effects of market volatilities on Mayfair Gold 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 Mayfair Gold with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayfair Gold and Boyd Gaming.
Diversification Opportunities for Mayfair Gold and Boyd Gaming
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mayfair and Boyd is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Mayfair Gold Corp and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Mayfair Gold 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 Mayfair Gold Corp 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 Mayfair Gold i.e., Mayfair Gold and Boyd Gaming go up and down completely randomly.
Pair Corralation between Mayfair Gold and Boyd Gaming
Assuming the 90 days horizon Mayfair Gold Corp is expected to under-perform the Boyd Gaming. In addition to that, Mayfair Gold is 1.78 times more volatile than Boyd Gaming. It trades about -0.33 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.14 per unit of volatility. If you would invest 7,387 in Boyd Gaming on September 13, 2024 and sell it today you would earn a total of 177.00 from holding Boyd Gaming or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mayfair Gold Corp vs. Boyd Gaming
Performance |
| Timeline |
| Mayfair Gold Corp |
| Boyd Gaming |
Mayfair Gold and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mayfair Gold and Boyd Gaming
The main advantage of trading using opposite Mayfair Gold and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayfair Gold 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.| Mayfair Gold vs. Revival Gold | Mayfair Gold vs. Galiano Gold | Mayfair Gold vs. US Gold Corp | Mayfair Gold vs. HUMANA INC |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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