Correlation Between Boeing and Naas Technology
Can any of the company-specific risk be diversified away by investing in both Boeing and Naas Technology 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 Naas Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and Naas Technology ADR, you can compare the effects of market volatilities on Boeing and Naas Technology 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 Naas Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Naas Technology.
Diversification Opportunities for Boeing and Naas Technology
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boeing and Naas is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Naas Technology ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naas Technology ADR 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 Naas Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naas Technology ADR has no effect on the direction of Boeing i.e., Boeing and Naas Technology go up and down completely randomly.
Pair Corralation between Boeing and Naas Technology
Allowing for the 90-day total investment horizon The Boeing is expected to generate 0.18 times more return on investment than Naas Technology. However, The Boeing is 5.42 times less risky than Naas Technology. It trades about -0.03 of its potential returns per unit of risk. Naas Technology ADR is currently generating about -0.07 per unit of risk. If you would invest 21,192 in The Boeing on November 3, 2024 and sell it today you would lose (3,540) from holding The Boeing or give up 16.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Boeing vs. Naas Technology ADR
Performance |
| Timeline |
| Boeing |
| Naas Technology ADR |
Boeing and Naas Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and Naas Technology
The main advantage of trading using opposite Boeing and Naas Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, Naas Technology 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 Naas Technology will offset losses from the drop in Naas Technology's long position.| Boeing vs. General Dynamics | Boeing vs. Rocket Lab USA | Boeing vs. SCOR PK | Boeing vs. Aquagold International |
| Naas Technology vs. Leslies | Naas Technology vs. Sally Beauty Holdings | Naas Technology vs. ODP Corp | Naas Technology vs. 1 800 FLOWERSCOM |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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