Correlation Between Minor International and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Minor International 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 Minor International and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minor International PCL and Boyd Gaming, you can compare the effects of market volatilities on Minor International 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 Minor International with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minor International and Boyd Gaming.
Diversification Opportunities for Minor International and Boyd Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Minor and Boyd is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Minor International PCL and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Minor International 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 Minor International PCL 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 Minor International i.e., Minor International and Boyd Gaming go up and down completely randomly.
Pair Corralation between Minor International and Boyd Gaming
Assuming the 90 days horizon Minor International is expected to generate 1.58 times less return on investment than Boyd Gaming. But when comparing it to its historical volatility, Minor International PCL is 1.06 times less risky than Boyd Gaming. It trades about 0.02 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,460 in Boyd Gaming on November 2, 2024 and sell it today you would earn a total of 1,261 from holding Boyd Gaming or generate 19.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 54.66% |
| Values | Daily Returns |
Minor International PCL vs. Boyd Gaming
Performance |
| Timeline |
| Minor International PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Boyd Gaming |
Minor International and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minor International and Boyd Gaming
The main advantage of trading using opposite Minor International and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minor International 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.| Minor International vs. PPL Corporation | Minor International vs. NiSource | Minor International vs. Suburban Propane Partners | Minor International vs. Catalyst Metals Limited |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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