Correlation Between Boeing and SENMED
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By analyzing existing cross correlation between The Boeing and SENMED 2927 01 NOV 51, you can compare the effects of market volatilities on Boeing and SENMED 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 SENMED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and SENMED.
Diversification Opportunities for Boeing and SENMED
Very good diversification
The 3 months correlation between Boeing and SENMED is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and SENMED 2927 01 NOV 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENMED 2927 01 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 SENMED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENMED 2927 01 has no effect on the direction of Boeing i.e., Boeing and SENMED go up and down completely randomly.
Pair Corralation between Boeing and SENMED
Allowing for the 90-day total investment horizon The Boeing is expected to generate 3.22 times more return on investment than SENMED. However, Boeing is 3.22 times more volatile than SENMED 2927 01 NOV 51. It trades about 0.04 of its potential returns per unit of risk. SENMED 2927 01 NOV 51 is currently generating about -0.87 per unit of risk. If you would invest 15,069 in The Boeing on August 28, 2024 and sell it today you would earn a total of 241.00 from holding The Boeing or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 19.05% |
| Values | Daily Returns |
The Boeing vs. SENMED 2927 01 NOV 51
Performance |
| Timeline |
| Boeing |
| SENMED 2927 01 |
Boeing and SENMED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and SENMED
The main advantage of trading using opposite Boeing and SENMED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, SENMED 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 SENMED will offset losses from the drop in SENMED's long position.The idea behind The Boeing and SENMED 2927 01 NOV 51 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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