Correlation Between Boyd Gaming and EAST SIDE
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and EAST SIDE 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 EAST SIDE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and EAST SIDE GAMES, you can compare the effects of market volatilities on Boyd Gaming and EAST SIDE 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 EAST SIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and EAST SIDE.
Diversification Opportunities for Boyd Gaming and EAST SIDE
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boyd and EAST is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and EAST SIDE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAST SIDE GAMES 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 EAST SIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAST SIDE GAMES has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and EAST SIDE go up and down completely randomly.
Pair Corralation between Boyd Gaming and EAST SIDE
Assuming the 90 days trading horizon Boyd Gaming is expected to generate 1.59 times less return on investment than EAST SIDE. But when comparing it to its historical volatility, Boyd Gaming is 3.5 times less risky than EAST SIDE. It trades about 0.04 of its potential returns per unit of risk. EAST SIDE GAMES is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 48.00 in EAST SIDE GAMES on September 23, 2024 and sell it today you would lose (14.00) from holding EAST SIDE GAMES or give up 29.17% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Boyd Gaming vs. EAST SIDE GAMES
Performance |
Timeline |
Boyd Gaming |
EAST SIDE GAMES |
Boyd Gaming and EAST SIDE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Boyd Gaming and EAST SIDE
The main advantage of trading using opposite Boyd Gaming and EAST SIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, EAST SIDE 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 EAST SIDE will offset losses from the drop in EAST SIDE's long position.Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc | Boyd Gaming vs. Apple Inc |
EAST SIDE vs. Nintendo Co | EAST SIDE vs. Nintendo Co | EAST SIDE vs. Sea Limited | EAST SIDE vs. Electronic Arts |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Global Correlations Find global opportunities by holding instruments from different markets | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |