Correlation Between Winpak and Boyd Group
Can any of the company-specific risk be diversified away by investing in both Winpak and Boyd Group 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 Winpak and Boyd Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winpak and Boyd Group Services, you can compare the effects of market volatilities on Winpak and Boyd Group 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 Winpak with a short position of Boyd Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winpak and Boyd Group.
Diversification Opportunities for Winpak and Boyd Group
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Winpak and Boyd is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Winpak and Boyd Group Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boyd Group Services and Winpak 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 Winpak are associated (or correlated) with Boyd Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boyd Group Services has no effect on the direction of Winpak i.e., Winpak and Boyd Group go up and down completely randomly.
Pair Corralation between Winpak and Boyd Group
Assuming the 90 days trading horizon Winpak is expected to generate 1.23 times less return on investment than Boyd Group. But when comparing it to its historical volatility, Winpak is 2.52 times less risky than Boyd Group. It trades about 0.27 of its potential returns per unit of risk. Boyd Group Services is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 22,350 in Boyd Group Services on September 5, 2025 and sell it today you would earn a total of 1,322 from holding Boyd Group Services or generate 5.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winpak vs. Boyd Group Services
Performance |
| Timeline |
| Winpak |
| Boyd Group Services |
Winpak and Boyd Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winpak and Boyd Group
The main advantage of trading using opposite Winpak and Boyd Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winpak position performs unexpectedly, Boyd Group 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 Group will offset losses from the drop in Boyd Group's long position.| Winpak vs. Uniserve Communications Corp | Winpak vs. Richelieu Hardware | Winpak vs. Domestic Metals Corp | Winpak vs. Perseus Mining |
| Boyd Group vs. Westshore Terminals Investment | Boyd Group vs. FTI Foodtech International | Boyd Group vs. CNJ Capital Investments | Boyd Group vs. Evertz Technologies Limited |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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