Correlation Between MOLSON COORS and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both MOLSON COORS 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 MOLSON COORS and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOLSON RS BEVERAGE and Boyd Gaming, you can compare the effects of market volatilities on MOLSON COORS 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 MOLSON COORS with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and Boyd Gaming.
Diversification Opportunities for MOLSON COORS and Boyd Gaming
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MOLSON and Boyd is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and MOLSON COORS 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 MOLSON RS BEVERAGE 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 MOLSON COORS i.e., MOLSON COORS and Boyd Gaming go up and down completely randomly.
Pair Corralation between MOLSON COORS and Boyd Gaming
Assuming the 90 days trading horizon MOLSON COORS is expected to generate 5.24 times less return on investment than Boyd Gaming. In addition to that, MOLSON COORS is 1.07 times more volatile than Boyd Gaming. It trades about 0.03 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.15 per unit of volatility. If you would invest 4,908 in Boyd Gaming on September 3, 2024 and sell it today you would earn a total of 1,992 from holding Boyd Gaming or generate 40.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOLSON RS BEVERAGE vs. Boyd Gaming
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| Boyd Gaming |
MOLSON COORS and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON COORS and Boyd Gaming
The main advantage of trading using opposite MOLSON COORS and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON COORS 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.| MOLSON COORS vs. Anheuser Busch InBev SANV | MOLSON COORS vs. China Resources Beer | MOLSON COORS vs. Royal Unibrew AS |
| Boyd Gaming vs. National Beverage Corp | Boyd Gaming vs. COFCO Joycome Foods | Boyd Gaming vs. Cal Maine Foods | Boyd Gaming vs. MOLSON RS BEVERAGE |
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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