Correlation Between Boyd Gaming and Land Securities

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

By analyzing existing cross correlation between Boyd Gaming and Land Securities Group, you can compare the effects of market volatilities on Boyd Gaming and Land Securities 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 Land Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Land Securities.

Diversification Opportunities for Boyd Gaming and Land Securities

-0.72

Correlation Coefficient

Boyd Gaming  Land Securities

Pay attention - limited upside

The 3 months correlation between Boyd and Land is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Land Securities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land Securities Group 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 Land Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land Securities Group has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Land Securities go up and down completely randomly.

Pair Corralation between Boyd Gaming and Land Securities

Considering the 90-day investment horizon Boyd Gaming is expected to generate 1.0 times less return on investment than Land Securities. But when comparing it to its historical volatility, Boyd Gaming is 2.47 times less risky than Land Securities. It trades about 0.03 of its potential returns per unit of risk. Land Securities Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  761.00  in Land Securities Group on October 11, 2024 and sell it today you would lose (99.00) from holding Land Securities Group or give up 13.01% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	76.97%
Values	Daily Returns

Boyd Gaming  vs.  Land Securities Group

Boyd Gaming

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Boyd Gaming are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Boyd Gaming exhibited solid returns over the last few months and may actually be approaching a breakup point.

Land Securities Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Land Securities Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Boyd Gaming and Land Securities

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

The idea behind Boyd Gaming and Land Securities Group 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.