Correlation Between UNIQA INSURANCE and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both UNIQA INSURANCE 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 UNIQA INSURANCE and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNIQA INSURANCE GR and Boyd Gaming, you can compare the effects of market volatilities on UNIQA INSURANCE 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 UNIQA INSURANCE with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNIQA INSURANCE and Boyd Gaming.
Diversification Opportunities for UNIQA INSURANCE and Boyd Gaming
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UNIQA and Boyd is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding UNIQA INSURANCE GR and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and UNIQA INSURANCE 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 UNIQA INSURANCE GR 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 UNIQA INSURANCE i.e., UNIQA INSURANCE and Boyd Gaming go up and down completely randomly.
Pair Corralation between UNIQA INSURANCE and Boyd Gaming
Assuming the 90 days trading horizon UNIQA INSURANCE is expected to generate 1.76 times less return on investment than Boyd Gaming. But when comparing it to its historical volatility, UNIQA INSURANCE GR is 3.48 times less risky than Boyd Gaming. It trades about 0.73 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 6,700 in Boyd Gaming on October 24, 2024 and sell it today you would earn a total of 600.00 from holding Boyd Gaming or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNIQA INSURANCE GR vs. Boyd Gaming
Performance |
| Timeline |
| UNIQA INSURANCE GR |
| Boyd Gaming |
UNIQA INSURANCE and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNIQA INSURANCE and Boyd Gaming
The main advantage of trading using opposite UNIQA INSURANCE and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNIQA INSURANCE 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.| UNIQA INSURANCE vs. China Communications Services | UNIQA INSURANCE vs. SEKISUI CHEMICAL | UNIQA INSURANCE vs. INTERSHOP Communications Aktiengesellschaft | UNIQA INSURANCE vs. Computershare Limited |
| Boyd Gaming vs. BII Railway Transportation | Boyd Gaming vs. JD SPORTS FASH | Boyd Gaming vs. UNIQA INSURANCE GR | Boyd Gaming vs. SPORT LISBOA E |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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