Correlation Between Samsung Electronics and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics 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 Samsung Electronics and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and Boyd Gaming, you can compare the effects of market volatilities on Samsung Electronics 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 Samsung Electronics with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Boyd Gaming.
Diversification Opportunities for Samsung Electronics and Boyd Gaming
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Boyd is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Samsung Electronics 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 Samsung Electronics Co 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 Samsung Electronics i.e., Samsung Electronics and Boyd Gaming go up and down completely randomly.
Pair Corralation between Samsung Electronics and Boyd Gaming
Assuming the 90 days trading horizon Samsung Electronics Co is expected to generate 2.68 times more return on investment than Boyd Gaming. However, Samsung Electronics is 2.68 times more volatile than Boyd Gaming. It trades about 0.13 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.16 per unit of risk. If you would invest 72,400 in Samsung Electronics Co on September 14, 2024 and sell it today you would earn a total of 5,400 from holding Samsung Electronics Co or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Boyd Gaming
Performance |
| Timeline |
| Samsung Electronics |
| Boyd Gaming |
Samsung Electronics and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Boyd Gaming
The main advantage of trading using opposite Samsung Electronics and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics 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.| Samsung Electronics vs. Boyd Gaming | Samsung Electronics vs. Soken Chemical Engineering | Samsung Electronics vs. GAMESTOP | Samsung Electronics vs. CHEMICAL INDUSTRIES |
| Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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