Correlation Between Dolphin Entertainment and Boyd Gaming

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

Diversification Opportunities for Dolphin Entertainment and Boyd Gaming

DolphinBoydDiversified AwayDolphinBoydDiversified Away100%
-0.71
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Dolphin and Boyd is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dolphin Entertainment and Boyd Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Gaming and Dolphin Entertainment 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 Dolphin Entertainment 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 Dolphin Entertainment i.e., Dolphin Entertainment and Boyd Gaming go up and down completely randomly.

Pair Corralation between Dolphin Entertainment and Boyd Gaming

Given the investment horizon of 90 days Dolphin Entertainment is expected to under-perform the Boyd Gaming. In addition to that, Dolphin Entertainment is 2.9 times more volatile than Boyd Gaming. It trades about -0.05 of its total potential returns per unit of risk. Boyd Gaming is currently generating about 0.17 per unit of volatility. If you would invest  6,284  in Boyd Gaming on September 18, 2024 and sell it today you would earn a total of  1,092  from holding Boyd Gaming or generate 17.38% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Dolphin Entertainment  vs.  Boyd Gaming

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -20-1001020
JavaScript chart by amCharts 3.21.15DLPN BYD
       Timeline  
Dolphin Entertainment 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Dolphin Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec11.11.21.31.41.51.6
Boyd Gaming 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Boyd Gaming are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Boyd Gaming exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec6264666870727476

Dolphin Entertainment and Boyd Gaming Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.38-5.53-3.68-1.820.01.643.355.056.758.45 0.050.100.15
JavaScript chart by amCharts 3.21.15DLPN BYD
       Returns  

Pair Trading with Dolphin Entertainment and Boyd Gaming

The main advantage of trading using opposite Dolphin Entertainment and Boyd Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dolphin Entertainment 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 Dolphin Entertainment 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

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets