Correlation Between Boeing and SASOL
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By analyzing existing cross correlation between The Boeing and SASOL 4375 18 SEP 26, you can compare the effects of market volatilities on Boeing and SASOL 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 SASOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and SASOL.
Diversification Opportunities for Boeing and SASOL
Very good diversification
The 3 months correlation between Boeing and SASOL is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and SASOL 4375 18 SEP 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASOL 4375 18 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 SASOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASOL 4375 18 has no effect on the direction of Boeing i.e., Boeing and SASOL go up and down completely randomly.
Pair Corralation between Boeing and SASOL
Allowing for the 90-day total investment horizon The Boeing is expected to generate 13.06 times more return on investment than SASOL. However, Boeing is 13.06 times more volatile than SASOL 4375 18 SEP 26. It trades about 0.1 of its potential returns per unit of risk. SASOL 4375 18 SEP 26 is currently generating about -0.48 per unit of risk. If you would invest 14,931 in The Boeing on September 1, 2024 and sell it today you would earn a total of 613.00 from holding The Boeing or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.9% |
| Values | Daily Returns |
The Boeing vs. SASOL 4375 18 SEP 26
Performance |
| Timeline |
| Boeing |
| SASOL 4375 18 |
Boeing and SASOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and SASOL
The main advantage of trading using opposite Boeing and SASOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, SASOL 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 SASOL will offset losses from the drop in SASOL'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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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