Correlation Between Boeing and Ebang International
Can any of the company-specific risk be diversified away by investing in both Boeing and Ebang International 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 Boeing and Ebang International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and Ebang International Holdings, you can compare the effects of market volatilities on Boeing and Ebang International 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 Boeing with a short position of Ebang International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Ebang International.
Diversification Opportunities for Boeing and Ebang International
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boeing and Ebang is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Ebang International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebang International and Boeing 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 The Boeing are associated (or correlated) with Ebang International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebang International has no effect on the direction of Boeing i.e., Boeing and Ebang International go up and down completely randomly.
Pair Corralation between Boeing and Ebang International
Allowing for the 90-day total investment horizon Boeing is expected to generate 17.03 times less return on investment than Ebang International. But when comparing it to its historical volatility, The Boeing is 3.47 times less risky than Ebang International. It trades about 0.04 of its potential returns per unit of risk. Ebang International Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 595.00 in Ebang International Holdings on August 28, 2024 and sell it today you would earn a total of 205.00 from holding Ebang International Holdings or generate 34.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Boeing vs. Ebang International Holdings
Performance |
| Timeline |
| Boeing |
| Ebang International |
Boeing and Ebang International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and Ebang International
The main advantage of trading using opposite Boeing and Ebang International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, Ebang International 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 Ebang International will offset losses from the drop in Ebang International's long position.The idea behind The Boeing and Ebang International Holdings 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.| Ebang International vs. Plexus Corp | Ebang International vs. Jabil Circuit | Ebang International vs. Sanmina | Ebang International vs. Methode Electronics |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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