Correlation Between Boyd Gaming and Reitar Logtech

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

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

Diversification Opportunities for Boyd Gaming and Reitar Logtech

-0.55

Correlation Coefficient

Boyd Gaming  Reitar Logtech

Excellent diversification

The 3 months correlation between Boyd and Reitar is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Reitar Logtech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reitar Logtech Holdings 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 Reitar Logtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reitar Logtech Holdings has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Reitar Logtech go up and down completely randomly.

Pair Corralation between Boyd Gaming and Reitar Logtech

Considering the 90-day investment horizon Boyd Gaming is expected to generate 0.18 times more return on investment than Reitar Logtech. However, Boyd Gaming is 5.6 times less risky than Reitar Logtech. It trades about 0.33 of its potential returns per unit of risk. Reitar Logtech Holdings is currently generating about -0.09 per unit of risk. If you would invest  7,109  in Boyd Gaming on October 22, 2024 and sell it today you would earn a total of  380.00  from holding Boyd Gaming or generate 5.35% return on investment over 90 days.

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

Boyd Gaming  vs.  Reitar Logtech Holdings

Boyd Gaming

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Boyd Gaming are ranked lower than 13 (%) 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.

Reitar Logtech Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Reitar Logtech Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Boyd Gaming and Reitar Logtech

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

The idea behind Boyd Gaming and Reitar Logtech Holdings 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.