Correlation Between Boeing and Gushen
Can any of the company-specific risk be diversified away by investing in both Boeing and Gushen 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 Gushen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and Gushen Inc, you can compare the effects of market volatilities on Boeing and Gushen 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 Gushen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Gushen.
Diversification Opportunities for Boeing and Gushen
Very good diversification
The 3 months correlation between Boeing and Gushen is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Gushen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gushen Inc 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 Gushen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gushen Inc has no effect on the direction of Boeing i.e., Boeing and Gushen go up and down completely randomly.
Pair Corralation between Boeing and Gushen
If you would invest 15,507 in The Boeing on September 3, 2024 and sell it today you would earn a total of 37.00 from holding The Boeing or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
The Boeing vs. Gushen Inc
Performance |
| Timeline |
| Boeing |
| Gushen Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boeing and Gushen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and Gushen
The main advantage of trading using opposite Boeing and Gushen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, Gushen 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 Gushen will offset losses from the drop in Gushen's long position.| Boeing vs. Highway Holdings Limited | Boeing vs. QCR Holdings | Boeing vs. Partner Communications | Boeing vs. Acumen Pharmaceuticals |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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