Correlation Between TFI International and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both TFI 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 TFI 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 TFI International and Boyd Gaming, you can compare the effects of market volatilities on TFI 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 TFI International with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFI International and Boyd Gaming.
Diversification Opportunities for TFI International and Boyd Gaming
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TFI and Boyd is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding TFI International and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and TFI 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 TFI International 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 TFI International i.e., TFI International and Boyd Gaming go up and down completely randomly.
Pair Corralation between TFI International and Boyd Gaming
Given the investment horizon of 90 days TFI International is expected to under-perform the Boyd Gaming. In addition to that, TFI International is 1.46 times more volatile than Boyd Gaming. It trades about -0.04 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.25 per unit of volatility. If you would invest 7,292 in Boyd Gaming on November 4, 2024 and sell it today you would earn a total of 373.00 from holding Boyd Gaming or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TFI International vs. Boyd Gaming
Performance |
| Timeline |
| TFI International |
| Boyd Gaming |
TFI International and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFI International and Boyd Gaming
The main advantage of trading using opposite TFI International and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFI 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.| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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