Correlation Between Boeing and Lig Assets
Can any of the company-specific risk be diversified away by investing in both Boeing and Lig Assets 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 Lig Assets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and Lig Assets, you can compare the effects of market volatilities on Boeing and Lig Assets 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 Lig Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Lig Assets.
Diversification Opportunities for Boeing and Lig Assets
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boeing and Lig is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Lig Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lig Assets 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 Lig Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lig Assets has no effect on the direction of Boeing i.e., Boeing and Lig Assets go up and down completely randomly.
Pair Corralation between Boeing and Lig Assets
Allowing for the 90-day total investment horizon The Boeing is expected to under-perform the Lig Assets. But the stock apears to be less risky and, when comparing its historical volatility, The Boeing is 5.09 times less risky than Lig Assets. The stock trades about -0.07 of its potential returns per unit of risk. The Lig Assets is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2.75 in Lig Assets on September 2, 2024 and sell it today you would lose (1.47) from holding Lig Assets or give up 53.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.79% |
| Values | Daily Returns |
The Boeing vs. Lig Assets
Performance |
| Timeline |
| Boeing |
| Lig Assets |
Boeing and Lig Assets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and Lig Assets
The main advantage of trading using opposite Boeing and Lig Assets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, Lig Assets 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 Lig Assets will offset losses from the drop in Lig Assets' long position.The idea behind The Boeing and Lig Assets 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.| Lig Assets vs. Beyond Commerce | Lig Assets vs. Baosheng Media Group | Lig Assets vs. MGO Global Common | Lig Assets vs. CMG Holdings Group |
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.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |