Correlation Between YXTCOM GROUP and Boyd Gaming

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

By analyzing existing cross correlation between YXTCOM GROUP HOLDING and Boyd Gaming, you can compare the effects of market volatilities on YXTCOM GROUP 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 YXTCOM GROUP with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of YXTCOM GROUP and Boyd Gaming.

Diversification Opportunities for YXTCOM GROUP and Boyd Gaming

-0.2

Correlation Coefficient

YXTCOM GROUP  Boyd Gaming

Good diversification

The 3 months correlation between YXTCOM and Boyd is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding YXTCOM GROUP HOLDING and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and YXTCOM GROUP 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 YXTCOM GROUP HOLDING 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 YXTCOM GROUP i.e., YXTCOM GROUP and Boyd Gaming go up and down completely randomly.

Pair Corralation between YXTCOM GROUP and Boyd Gaming

Considering the 90-day investment horizon YXTCOM GROUP HOLDING is expected to under-perform the Boyd Gaming. In addition to that, YXTCOM GROUP is 5.09 times more volatile than Boyd Gaming. It trades about -0.12 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.03 per unit of volatility. If you would invest  5,969  in Boyd Gaming on October 15, 2024 and sell it today you would earn a total of  1,139  from holding Boyd Gaming or generate 19.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	20.56%
Values	Daily Returns

YXTCOM GROUP HOLDING  vs.  Boyd Gaming

YXTCOM GROUP HOLDING

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in YXTCOM GROUP HOLDING are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, YXTCOM GROUP unveiled solid returns over the last few months and may actually be approaching a breakup point.

Boyd Gaming

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Boyd Gaming are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Boyd Gaming may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with YXTCOM GROUP and Boyd Gaming

The main advantage of trading using opposite YXTCOM GROUP and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YXTCOM GROUP 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.

The idea behind YXTCOM GROUP HOLDING and Boyd Gaming 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.