Correlation Between Boeing and ProShares Short
Can any of the company-specific risk be diversified away by investing in both Boeing and ProShares Short 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 ProShares Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and ProShares Short Financials, you can compare the effects of market volatilities on Boeing and ProShares Short 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 ProShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and ProShares Short.
Diversification Opportunities for Boeing and ProShares Short
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boeing and ProShares is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and ProShares Short Financials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short Fina 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 ProShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Short Fina has no effect on the direction of Boeing i.e., Boeing and ProShares Short go up and down completely randomly.
Pair Corralation between Boeing and ProShares Short
Allowing for the 90-day total investment horizon The Boeing is expected to generate 2.17 times more return on investment than ProShares Short. However, Boeing is 2.17 times more volatile than ProShares Short Financials. It trades about -0.05 of its potential returns per unit of risk. ProShares Short Financials is currently generating about -0.15 per unit of risk. If you would invest 18,457 in The Boeing on September 1, 2024 and sell it today you would lose (2,913) from holding The Boeing or give up 15.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
The Boeing vs. ProShares Short Financials
Performance |
| Timeline |
| Boeing |
| ProShares Short Fina |
Boeing and ProShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and ProShares Short
The main advantage of trading using opposite Boeing and ProShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, ProShares Short 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 ProShares Short will offset losses from the drop in ProShares Short's long position.| Boeing vs. Raytheon Technologies Corp | Boeing vs. Northrop Grumman | Boeing vs. General Dynamics | Boeing vs. L3Harris Technologies |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |