Correlation Between Hochschild Mining and Boyd Gaming
Can any of the company-specific risk be diversified away by investing in both Hochschild Mining and Boyd Gaming 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 Hochschild Mining and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hochschild Mining plc and Boyd Gaming, you can compare the effects of market volatilities on Hochschild Mining and Boyd Gaming 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 Hochschild Mining with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hochschild Mining and Boyd Gaming.
Diversification Opportunities for Hochschild Mining and Boyd Gaming
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hochschild and Boyd is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hochschild Mining plc and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Hochschild Mining 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 Hochschild Mining plc are associated (or correlated) with Boyd Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boyd Gaming has no effect on the direction of Hochschild Mining i.e., Hochschild Mining and Boyd Gaming go up and down completely randomly.
Pair Corralation between Hochschild Mining and Boyd Gaming
Assuming the 90 days horizon Hochschild Mining plc is expected to generate 1.63 times more return on investment than Boyd Gaming. However, Hochschild Mining is 1.63 times more volatile than Boyd Gaming. It trades about 0.16 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.22 per unit of risk. If you would invest 198.00 in Hochschild Mining plc on September 12, 2024 and sell it today you would earn a total of 76.00 from holding Hochschild Mining plc or generate 38.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Hochschild Mining plc vs. Boyd Gaming
Performance |
Timeline |
Hochschild Mining plc |
Boyd Gaming |
Hochschild Mining and Boyd Gaming Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hochschild Mining and Boyd Gaming
The main advantage of trading using opposite Hochschild Mining and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hochschild Mining position performs unexpectedly, Boyd Gaming 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 Boyd Gaming will offset losses from the drop in Boyd Gaming's long position.Hochschild Mining vs. Franco Nevada | Hochschild Mining vs. Superior Plus Corp | Hochschild Mining vs. SIVERS SEMICONDUCTORS AB | Hochschild Mining vs. Norsk Hydro ASA |
Boyd Gaming vs. Internet Thailand PCL | Boyd Gaming vs. Pembina Pipeline Corp | Boyd Gaming vs. Entravision Communications | Boyd Gaming vs. Sims Metal Management |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |