Correlation Between Boyd Gaming and Jupiter Fund

Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Jupiter Fund 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 Boyd Gaming and Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Boyd Gaming and Jupiter Fund Management, you can compare the effects of market volatilities on Boyd Gaming and Jupiter Fund 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 Boyd Gaming with a short position of Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Jupiter Fund.

Diversification Opportunities for Boyd Gaming and Jupiter Fund

-0.04

Correlation Coefficient

Boyd Gaming  Jupiter Fund

Good diversification

The 3 months correlation between Boyd and Jupiter is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management and Boyd Gaming 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 Boyd Gaming are associated (or correlated) with Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Jupiter Fund go up and down completely randomly.

Pair Corralation between Boyd Gaming and Jupiter Fund

Assuming the 90 days trading horizon Boyd Gaming is expected to generate 0.61 times more return on investment than Jupiter Fund. However, Boyd Gaming is 1.64 times less risky than Jupiter Fund. It trades about -0.07 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.05 per unit of risk. If you would invest  6,782  in Boyd Gaming on December 20, 2024 and sell it today you would lose (532.00) from holding Boyd Gaming or give up 7.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Boyd Gaming  vs.  Jupiter Fund Management

Boyd Gaming

Risk-Adjusted Performance

Very Weak

Over the last 90 days Boyd Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Jupiter Fund Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jupiter Fund Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Boyd Gaming and Jupiter Fund

The main advantage of trading using opposite Boyd Gaming and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.

The idea behind Boyd Gaming and Jupiter Fund Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.