Correlation Between Boeing and Infinite Acquisition
Can any of the company-specific risk be diversified away by investing in both Boeing and Infinite Acquisition 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 Infinite Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and Infinite Acquisition Corp, you can compare the effects of market volatilities on Boeing and Infinite Acquisition 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 Infinite Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Infinite Acquisition.
Diversification Opportunities for Boeing and Infinite Acquisition
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boeing and Infinite is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Infinite Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinite Acquisition Corp 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 Infinite Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinite Acquisition Corp has no effect on the direction of Boeing i.e., Boeing and Infinite Acquisition go up and down completely randomly.
Pair Corralation between Boeing and Infinite Acquisition
If you would invest 1,061 in Infinite Acquisition Corp on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Infinite Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
The Boeing vs. Infinite Acquisition Corp
Performance |
| Timeline |
| Boeing |
| Infinite Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boeing and Infinite Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and Infinite Acquisition
The main advantage of trading using opposite Boeing and Infinite Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, Infinite Acquisition 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 Infinite Acquisition will offset losses from the drop in Infinite Acquisition's long position.The idea behind The Boeing and Infinite Acquisition Corp 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.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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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