Correlation Between Boyd Gaming and BORR DRILLING

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

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

Diversification Opportunities for Boyd Gaming and BORR DRILLING

0.23

Correlation Coefficient

Boyd Gaming  BORR DRILLING

Modest diversification

The 3 months correlation between Boyd and BORR is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and BORR DRILLING NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BORR DRILLING NEW 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 BORR DRILLING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BORR DRILLING NEW has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and BORR DRILLING go up and down completely randomly.

Pair Corralation between Boyd Gaming and BORR DRILLING

Assuming the 90 days trading horizon Boyd Gaming is expected to generate 0.35 times more return on investment than BORR DRILLING. However, Boyd Gaming is 2.86 times less risky than BORR DRILLING. It trades about 0.21 of its potential returns per unit of risk. BORR DRILLING NEW is currently generating about 0.04 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

Boyd Gaming  vs.  BORR DRILLING NEW

Boyd Gaming

Risk-Adjusted Performance

Good

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.

BORR DRILLING NEW

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BORR DRILLING NEW are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, BORR DRILLING may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Boyd Gaming and BORR DRILLING

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

The idea behind Boyd Gaming and BORR DRILLING NEW 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.