Correlation Between Gelsenwasser and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Gelsenwasser 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 Gelsenwasser and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gelsenwasser AG and Boyd Gaming, you can compare the effects of market volatilities on Gelsenwasser 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 Gelsenwasser with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gelsenwasser and Boyd Gaming.
Diversification Opportunities for Gelsenwasser and Boyd Gaming
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gelsenwasser and Boyd is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gelsenwasser AG and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Gelsenwasser 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 Gelsenwasser AG 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 Gelsenwasser i.e., Gelsenwasser and Boyd Gaming go up and down completely randomly.
Pair Corralation between Gelsenwasser and Boyd Gaming
Assuming the 90 days horizon Gelsenwasser AG is expected to under-perform the Boyd Gaming. In addition to that, Gelsenwasser is 1.38 times more volatile than Boyd Gaming. It trades about -0.06 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.14 per unit of volatility. If you would invest 4,888 in Boyd Gaming on August 29, 2024 and sell it today you would earn a total of 2,012 from holding Boyd Gaming or generate 41.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gelsenwasser AG vs. Boyd Gaming
Performance |
| Timeline |
| Gelsenwasser AG |
| Boyd Gaming |
Gelsenwasser and Boyd Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gelsenwasser and Boyd Gaming
The main advantage of trading using opposite Gelsenwasser and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gelsenwasser 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.| Gelsenwasser vs. United Utilities Group | Gelsenwasser vs. Guangdong Investment Limited | Gelsenwasser vs. TTW Public | Gelsenwasser vs. Superior Plus Corp |
| Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |