Correlation Between Boeing and GraniteShares
Can any of the company-specific risk be diversified away by investing in both Boeing and GraniteShares 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 GraniteShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and GraniteShares 2x Long, you can compare the effects of market volatilities on Boeing and GraniteShares 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 GraniteShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and GraniteShares.
Diversification Opportunities for Boeing and GraniteShares
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boeing and GraniteShares is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and GraniteShares 2x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 2x Long 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 GraniteShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 2x Long has no effect on the direction of Boeing i.e., Boeing and GraniteShares go up and down completely randomly.
Pair Corralation between Boeing and GraniteShares
Allowing for the 90-day total investment horizon The Boeing is expected to generate 0.5 times more return on investment than GraniteShares. However, The Boeing is 2.02 times less risky than GraniteShares. It trades about 0.1 of its potential returns per unit of risk. GraniteShares 2x Long is currently generating about -0.19 per unit of risk. If you would invest 14,931 in The Boeing on September 1, 2024 and sell it today you would earn a total of 613.00 from holding The Boeing or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
The Boeing vs. GraniteShares 2x Long
Performance |
| Timeline |
| Boeing |
| GraniteShares 2x Long |
Boeing and GraniteShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and GraniteShares
The main advantage of trading using opposite Boeing and GraniteShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, GraniteShares 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 GraniteShares will offset losses from the drop in GraniteShares' long position.| Boeing vs. Raytheon Technologies Corp | Boeing vs. Northrop Grumman | Boeing vs. General Dynamics | Boeing vs. L3Harris Technologies |
| GraniteShares vs. Tidal Trust II | GraniteShares vs. Tidal Trust II | GraniteShares vs. Direxion Daily META | GraniteShares vs. Direxion Daily META |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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