Correlation Between Boyd Gaming and CONSOLIDATED

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

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

Diversification Opportunities for Boyd Gaming and CONSOLIDATED

-0.44

Correlation Coefficient

Boyd Gaming  CONSOLIDATED

Very good diversification

The 3 months correlation between Boyd and CONSOLIDATED is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and CONSOLIDATED EDISON N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSOLIDATED EDISON 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 CONSOLIDATED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSOLIDATED EDISON has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and CONSOLIDATED go up and down completely randomly.

Pair Corralation between Boyd Gaming and CONSOLIDATED

Considering the 90-day investment horizon Boyd Gaming is expected to under-perform the CONSOLIDATED. In addition to that, Boyd Gaming is 1.45 times more volatile than CONSOLIDATED EDISON N. It trades about -0.03 of its total potential returns per unit of risk. CONSOLIDATED EDISON N is currently generating about 0.06 per unit of volatility. If you would invest  8,074  in CONSOLIDATED EDISON N on December 25, 2024 and sell it today you would earn a total of  210.00  from holding CONSOLIDATED EDISON N or generate 2.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	76.27%
Values	Daily Returns

Boyd Gaming  vs.  CONSOLIDATED EDISON N

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 rather sound basic indicators, Boyd Gaming is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

CONSOLIDATED EDISON

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CONSOLIDATED EDISON N are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, CONSOLIDATED is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Boyd Gaming and CONSOLIDATED

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

The idea behind Boyd Gaming and CONSOLIDATED EDISON N 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.