Correlation Between Boyd Gaming and Comcast Corp

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Can any of the company-specific risk be diversified away by investing in both Boyd Gaming and Comcast Corp 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 Comcast Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyd Gaming and Comcast Corp, you can compare the effects of market volatilities on Boyd Gaming and Comcast Corp 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 Comcast Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and Comcast Corp.

Diversification Opportunities for Boyd Gaming and Comcast Corp

0.01
  Correlation Coefficient

Significant diversification

The 3 months correlation between Boyd and Comcast is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and Comcast Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comcast Corp 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 Comcast Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comcast Corp has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and Comcast Corp go up and down completely randomly.

Pair Corralation between Boyd Gaming and Comcast Corp

Considering the 90-day investment horizon Boyd Gaming is expected to generate 1.39 times more return on investment than Comcast Corp. However, Boyd Gaming is 1.39 times more volatile than Comcast Corp. It trades about 0.16 of its potential returns per unit of risk. Comcast Corp is currently generating about 0.09 per unit of risk. If you would invest  6,329  in Boyd Gaming on December 29, 2023 and sell it today you would earn a total of  313.00  from holding Boyd Gaming or generate 4.95% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Boyd Gaming  vs.  Comcast Corp

 Performance 
       Timeline  
Boyd Gaming 

Risk-Adjusted Performance

6 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Boyd Gaming are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Boyd Gaming may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Comcast Corp 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Comcast Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Comcast Corp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Boyd Gaming and Comcast Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Boyd Gaming and Comcast Corp

The main advantage of trading using opposite Boyd Gaming and Comcast Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, Comcast Corp 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 Comcast Corp will offset losses from the drop in Comcast Corp's long position.
The idea behind Boyd Gaming and Comcast Corp 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.
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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