Correlation Between Boeing and Kaman
Can any of the company-specific risk be diversified away by investing in both Boeing and Kaman 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 Kaman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and Kaman, you can compare the effects of market volatilities on Boeing and Kaman 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 Kaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Kaman.
Diversification Opportunities for Boeing and Kaman
Excellent diversification
The 3 months correlation between Boeing and Kaman is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Kaman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaman 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 Kaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaman has no effect on the direction of Boeing i.e., Boeing and Kaman go up and down completely randomly.
Pair Corralation between Boeing and Kaman
If you would invest 2,402 in Kaman on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Kaman or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.68% |
| Values | Daily Returns |
The Boeing vs. Kaman
Performance |
| Timeline |
| Boeing |
| Kaman |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boeing and Kaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and Kaman
The main advantage of trading using opposite Boeing and Kaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, Kaman 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 Kaman will offset losses from the drop in Kaman's long position.| Boeing vs. Highway Holdings Limited | Boeing vs. QCR Holdings | Boeing vs. Partner Communications | Boeing vs. Acumen Pharmaceuticals |
| Kaman vs. Ducommun Incorporated | Kaman vs. Innovative Solutions and | Kaman vs. National Presto Industries | Kaman vs. Astronics |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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