Correlation Between Boeing and ENCANA
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By analyzing existing cross correlation between The Boeing and ENCANA P 65, you can compare the effects of market volatilities on Boeing and ENCANA 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 ENCANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and ENCANA.
Diversification Opportunities for Boeing and ENCANA
Excellent diversification
The 3 months correlation between Boeing and ENCANA is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and ENCANA P 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENCANA P 65 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 ENCANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENCANA P 65 has no effect on the direction of Boeing i.e., Boeing and ENCANA go up and down completely randomly.
Pair Corralation between Boeing and ENCANA
Allowing for the 90-day total investment horizon The Boeing is expected to under-perform the ENCANA. In addition to that, Boeing is 2.47 times more volatile than ENCANA P 65. It trades about 0.0 of its total potential returns per unit of risk. ENCANA P 65 is currently generating about 0.01 per unit of volatility. If you would invest 10,181 in ENCANA P 65 on November 1, 2024 and sell it today you would earn a total of 96.00 from holding ENCANA P 65 or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 83.33% |
| Values | Daily Returns |
The Boeing vs. ENCANA P 65
Performance |
| Timeline |
| Boeing |
| ENCANA P 65 |
Boeing and ENCANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and ENCANA
The main advantage of trading using opposite Boeing and ENCANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, ENCANA 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 ENCANA will offset losses from the drop in ENCANA's long position.| Boeing vs. Sidus Space | Boeing vs. Planet Labs PBC | Boeing vs. Intuitive Machines | Boeing vs. Rocket Lab USA |
| ENCANA vs. AEP TEX INC | ENCANA vs. US BANK NATIONAL | ENCANA vs. Albertsons Companies | ENCANA vs. Innovation Beverage Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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