Correlation Between Boyd Gaming and Wabash National
Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Wabash National 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 Wabash National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Wabash National, you can compare the effects of market volatilities on Boyd Gaming and Wabash National 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 Wabash National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Wabash National.
Diversification Opportunities for Boyd Gaming and Wabash National
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Boyd and Wabash is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Wabash National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wabash National 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 Wabash National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wabash National has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Wabash National go up and down completely randomly.
Pair Corralation between Boyd Gaming and Wabash National
Considering the 90-day investment horizon Boyd Gaming is expected to generate 0.51 times more return on investment than Wabash National. However, Boyd Gaming is 1.95 times less risky than Wabash National. It trades about -0.05 of its potential returns per unit of risk. Wabash National is currently generating about -0.22 per unit of risk. If you would invest 7,222 in Boyd Gaming on December 27, 2024 and sell it today you would lose (386.00) from holding Boyd Gaming or give up 5.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Boyd Gaming vs. Wabash National
Performance |
Timeline |
Boyd Gaming |
Wabash National |
Boyd Gaming and Wabash National Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Boyd Gaming and Wabash National
The main advantage of trading using opposite Boyd Gaming and Wabash National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Wabash National 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 Wabash National will offset losses from the drop in Wabash National's long position.Boyd Gaming vs. MGM Resorts International | Boyd Gaming vs. Las Vegas Sands | Boyd Gaming vs. Wynn Resorts Limited | Boyd Gaming vs. Penn National Gaming |
Wabash National vs. Rev Group | Wabash National vs. Gencor Industries | Wabash National vs. Alamo Group | Wabash National vs. Columbus McKinnon |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |