Correlation Between Vintage Wine and Boyd Gaming

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Vintage Wine 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 Vintage Wine and Boyd Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vintage Wine Estates and Boyd Gaming, you can compare the effects of market volatilities on Vintage Wine 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 Vintage Wine with a short position of Boyd Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vintage Wine and Boyd Gaming.

Diversification Opportunities for Vintage Wine and Boyd Gaming

-0.28
  Correlation Coefficient

Very good diversification

The 3 months correlation between Vintage and Boyd is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Vintage Wine Estates and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Vintage Wine 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 Vintage Wine Estates 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 Vintage Wine i.e., Vintage Wine and Boyd Gaming go up and down completely randomly.

Pair Corralation between Vintage Wine and Boyd Gaming

Considering the 90-day investment horizon Vintage Wine Estates is expected to under-perform the Boyd Gaming. In addition to that, Vintage Wine is 2.72 times more volatile than Boyd Gaming. It trades about -0.11 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.01 per unit of volatility. If you would invest  5,967  in Boyd Gaming on January 22, 2024 and sell it today you would earn a total of  299.00  from holding Boyd Gaming or generate 5.01% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Vintage Wine Estates  vs.  Boyd Gaming

 Performance 
       Timeline  
Vintage Wine Estates 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Vintage Wine Estates has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in May 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
Boyd Gaming 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.

Vintage Wine and Boyd Gaming Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Vintage Wine and Boyd Gaming

The main advantage of trading using opposite Vintage Wine and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vintage Wine 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 Vintage Wine Estates 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.
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges