Correlation Between Boyd Gaming and ATMOS

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

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

Diversification Opportunities for Boyd Gaming and ATMOS

0.28

Correlation Coefficient

Boyd Gaming  ATMOS

Modest diversification

The 3 months correlation between Boyd and ATMOS is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Boyd Gaming and ATMOS ENERGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMOS ENERGY P 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 ATMOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATMOS ENERGY P has no effect on the direction of Boyd Gaming i.e., Boyd Gaming and ATMOS go up and down completely randomly.

Pair Corralation between Boyd Gaming and ATMOS

Considering the 90-day investment horizon Boyd Gaming is expected to generate 1.18 times more return on investment than ATMOS. However, Boyd Gaming is 1.18 times more volatile than ATMOS ENERGY P. It trades about 0.01 of its potential returns per unit of risk. ATMOS ENERGY P is currently generating about -0.17 per unit of risk. If you would invest  7,149  in Boyd Gaming on September 26, 2024 and sell it today you would earn a total of  19.00  from holding Boyd Gaming or generate 0.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	41.46%
Values	Daily Returns

Boyd Gaming  vs.  ATMOS ENERGY P

Boyd Gaming

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Boyd Gaming are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Boyd Gaming may actually be approaching a critical reversion point that can send shares even higher in January 2025.

ATMOS ENERGY P

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATMOS ENERGY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for ATMOS ENERGY P investors.

Pair Trading with Boyd Gaming and ATMOS

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

The idea behind Boyd Gaming and ATMOS ENERGY P 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 Stocks Directory module to find actively traded stocks across global markets.