Correlation Between 42225UAD6 and Boyd Gaming
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By analyzing existing cross correlation between HEALTHCARE TR AMER and Boyd Gaming, you can compare the effects of market volatilities on 42225UAD6 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 42225UAD6 with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of 42225UAD6 and Boyd Gaming.
Diversification Opportunities for 42225UAD6 and Boyd Gaming
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 42225UAD6 and Boyd is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding HEALTHCARE TR AMER and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and 42225UAD6 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 HEALTHCARE TR AMER 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 42225UAD6 i.e., 42225UAD6 and Boyd Gaming go up and down completely randomly.
Pair Corralation between 42225UAD6 and Boyd Gaming
Assuming the 90 days trading horizon HEALTHCARE TR AMER is expected to under-perform the Boyd Gaming. But the bond apears to be less risky and, when comparing its historical volatility, HEALTHCARE TR AMER is 2.12 times less risky than Boyd Gaming. The bond trades about -0.25 of its potential returns per unit of risk. The Boyd Gaming is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 6,831 in Boyd Gaming on September 3, 2024 and sell it today you would earn a total of 554.00 from holding Boyd Gaming or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.0% |
| Values | Daily Returns |
HEALTHCARE TR AMER vs. Boyd Gaming
Performance |
| Timeline |
| HEALTHCARE TR AMER |
| Boyd Gaming |
42225UAD6 and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 42225UAD6 and Boyd Gaming
The main advantage of trading using opposite 42225UAD6 and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 42225UAD6 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.| 42225UAD6 vs. Dana Inc | 42225UAD6 vs. National Vision Holdings | 42225UAD6 vs. Lululemon Athletica | 42225UAD6 vs. Lucid Group |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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