Correlation Between ORIX and Boyd Gaming

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

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

Diversification Opportunities for ORIX and Boyd Gaming

0.62

Correlation Coefficient

ORIX  Boyd Gaming

Poor diversification

The 3 months correlation between ORIX and Boyd is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding ORIX Corp. and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and ORIX 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 ORIX Corporation 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 ORIX i.e., ORIX and Boyd Gaming go up and down completely randomly.

Pair Corralation between ORIX and Boyd Gaming

Assuming the 90 days horizon ORIX is expected to generate 2.65 times less return on investment than Boyd Gaming. But when comparing it to its historical volatility, ORIX Corporation is 1.29 times less risky than Boyd Gaming. It trades about 0.09 of its potential returns per unit of risk. Boyd Gaming is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  5,786  in Boyd Gaming on April 24, 2025 and sell it today you would earn a total of  1,214  from holding Boyd Gaming or generate 20.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

ORIX Corp.  vs.  Boyd Gaming

ORIX

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ORIX Corporation are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ORIX may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Boyd Gaming

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Boyd Gaming are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Boyd Gaming unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ORIX and Boyd Gaming

The main advantage of trading using opposite ORIX and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ORIX 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 ORIX Corporation 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.