Correlation Between SOUTHERN and Boyd Gaming
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By analyzing existing cross correlation between SOUTHERN CALIF EDISON and Boyd Gaming, you can compare the effects of market volatilities on SOUTHERN 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 SOUTHERN with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and Boyd Gaming.
Diversification Opportunities for SOUTHERN and Boyd Gaming
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SOUTHERN and Boyd is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN CALIF EDISON and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and SOUTHERN 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 SOUTHERN CALIF EDISON 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 SOUTHERN i.e., SOUTHERN and Boyd Gaming go up and down completely randomly.
Pair Corralation between SOUTHERN and Boyd Gaming
Assuming the 90 days trading horizon SOUTHERN is expected to generate 3.56 times less return on investment than Boyd Gaming. But when comparing it to its historical volatility, SOUTHERN CALIF EDISON is 1.26 times less risky than Boyd Gaming. It trades about 0.13 of its potential returns per unit of risk. 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 5, 2024 and sell it today you would earn a total of 641.00 from holding Boyd Gaming or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
SOUTHERN CALIF EDISON vs. Boyd Gaming
Performance |
| Timeline |
| SOUTHERN CALIF EDISON |
| Boyd Gaming |
SOUTHERN and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and Boyd Gaming
The main advantage of trading using opposite SOUTHERN and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN 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.| SOUTHERN vs. Ainsworth Game Technology | SOUTHERN vs. Xponential Fitness | SOUTHERN vs. Wicket Gaming AB | SOUTHERN vs. Marine Products |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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