Correlation Between Boeing and Longfor Group
Can any of the company-specific risk be diversified away by investing in both Boeing and Longfor 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 Boeing and Longfor Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and Longfor Group Holdings, you can compare the effects of market volatilities on Boeing and Longfor 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 Boeing with a short position of Longfor Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Longfor Group.
Diversification Opportunities for Boeing and Longfor Group
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boeing and Longfor is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Longfor Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longfor Group Holdings 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 Longfor Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longfor Group Holdings has no effect on the direction of Boeing i.e., Boeing and Longfor Group go up and down completely randomly.
Pair Corralation between Boeing and Longfor Group
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 | 100.0% |
| Values | Daily Returns |
The Boeing vs. Longfor Group Holdings
Performance |
| Timeline |
| Boeing |
| Longfor Group Holdings |
Boeing and Longfor Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and Longfor Group
The main advantage of trading using opposite Boeing and Longfor Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, Longfor 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 Longfor Group will offset losses from the drop in Longfor Group's long position.| Boeing vs. Highway Holdings Limited | Boeing vs. QCR Holdings | Boeing vs. Partner Communications | Boeing vs. Acumen Pharmaceuticals |
| Longfor Group vs. China Overseas Land | Longfor Group vs. Sun Hung Kai | Longfor Group vs. Country Garden Holdings |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |