Correlation Between Mondee Holdings and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Mondee Holdings 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 Mondee Holdings and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondee Holdings and Boyd Gaming, you can compare the effects of market volatilities on Mondee Holdings 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 Mondee Holdings with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and Boyd Gaming.
Diversification Opportunities for Mondee Holdings and Boyd Gaming
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mondee and Boyd is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Mondee Holdings 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 Mondee Holdings 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 Mondee Holdings i.e., Mondee Holdings and Boyd Gaming go up and down completely randomly.
Pair Corralation between Mondee Holdings and Boyd Gaming
Given the investment horizon of 90 days Mondee Holdings is expected to under-perform the Boyd Gaming. In addition to that, Mondee Holdings is 5.15 times more volatile than Boyd Gaming. It trades about -0.08 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 6,936 in Boyd Gaming on August 26, 2024 and sell it today you would earn a total of 297.00 from holding Boyd Gaming or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mondee Holdings vs. Boyd Gaming
Performance |
| Timeline |
| Mondee Holdings |
| Boyd Gaming |
Mondee Holdings and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mondee Holdings and Boyd Gaming
The main advantage of trading using opposite Mondee Holdings and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings 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.| Mondee Holdings vs. Yatra Online | Mondee Holdings vs. Despegar Corp | Mondee Holdings vs. Lindblad Expeditions Holdings | Mondee Holdings vs. MakeMyTrip 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| CEOs Directory Screen CEOs from public companies around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |