Correlation Between Boeing and EXELON
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By analyzing existing cross correlation between The Boeing and EXELON PORATION, you can compare the effects of market volatilities on Boeing and EXELON 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 EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and EXELON.
Diversification Opportunities for Boeing and EXELON
Excellent diversification
The 3 months correlation between Boeing and EXELON is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and EXELON PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON PORATION 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 EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON PORATION has no effect on the direction of Boeing i.e., Boeing and EXELON go up and down completely randomly.
Pair Corralation between Boeing and EXELON
Allowing for the 90-day total investment horizon The Boeing is expected to generate 5.5 times more return on investment than EXELON. However, Boeing is 5.5 times more volatile than EXELON PORATION. It trades about 0.1 of its potential returns per unit of risk. EXELON PORATION is currently generating about -0.12 per unit of risk. If you would invest 15,520 in The Boeing on October 24, 2024 and sell it today you would earn a total of 1,589 from holding The Boeing or generate 10.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
The Boeing vs. EXELON PORATION
Performance |
| Timeline |
| Boeing |
| EXELON PORATION |
Boeing and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and EXELON
The main advantage of trading using opposite Boeing and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.The idea behind The Boeing and EXELON PORATION 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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