Correlation Between Boyd Gaming and ALBIS LEASING

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

By analyzing existing cross correlation between Boyd Gaming and ALBIS LEASING AG, you can compare the effects of market volatilities on Boyd Gaming and ALBIS LEASING 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 ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyd Gaming and ALBIS LEASING.

Diversification Opportunities for Boyd Gaming and ALBIS LEASING

0.68

Correlation Coefficient

Boyd Gaming  ALBIS LEASING

Poor diversification

The 3 months correlation between Boyd and ALBIS is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG 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 ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and ALBIS LEASING go up and down completely randomly.

Pair Corralation between Boyd Gaming and ALBIS LEASING

Assuming the 90 days trading horizon Boyd Gaming is expected to generate 1.83 times more return on investment than ALBIS LEASING. However, Boyd Gaming is 1.83 times more volatile than ALBIS LEASING AG. It trades about 0.21 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.28 per unit of risk. If you would invest  5,736  in Boyd Gaming on April 20, 2025 and sell it today you would earn a total of  1,314  from holding Boyd Gaming or generate 22.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Boyd Gaming  vs.  ALBIS LEASING AG

Boyd Gaming

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Boyd Gaming are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Boyd Gaming unveiled solid returns over the last few months and may actually be approaching a breakup point.

ALBIS LEASING AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ALBIS LEASING AG are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, ALBIS LEASING unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Boyd Gaming and ALBIS LEASING

The main advantage of trading using opposite Boyd Gaming and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyd Gaming position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.

The idea behind Boyd Gaming and ALBIS LEASING AG 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.