Correlation Between Xinhua Winshare and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Xinhua Winshare 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 Xinhua Winshare and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xinhua Winshare Publishing and Boyd Gaming, you can compare the effects of market volatilities on Xinhua Winshare 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 Xinhua Winshare with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinhua Winshare and Boyd Gaming.
Diversification Opportunities for Xinhua Winshare and Boyd Gaming
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinhua and Boyd is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Xinhua Winshare Publishing and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Xinhua Winshare 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 Xinhua Winshare Publishing 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 Xinhua Winshare i.e., Xinhua Winshare and Boyd Gaming go up and down completely randomly.
Pair Corralation between Xinhua Winshare and Boyd Gaming
Assuming the 90 days horizon Xinhua Winshare Publishing is expected to generate 1.42 times more return on investment than Boyd Gaming. However, Xinhua Winshare is 1.42 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 -0.11 per unit of risk. If you would invest 128.00 in Xinhua Winshare Publishing on October 12, 2024 and sell it today you would earn a total of 6.00 from holding Xinhua Winshare Publishing or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinhua Winshare Publishing vs. Boyd Gaming
Performance |
| Timeline |
| Xinhua Winshare Publ |
| Boyd Gaming |
Xinhua Winshare and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinhua Winshare and Boyd Gaming
The main advantage of trading using opposite Xinhua Winshare and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinhua Winshare 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.| Xinhua Winshare vs. GWILLI FOOD | Xinhua Winshare vs. MTY Food Group | Xinhua Winshare vs. Thai Beverage Public | Xinhua Winshare vs. MUTUIONLINE |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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