Correlation Between Boeing and SUMITR
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By analyzing existing cross correlation between The Boeing and SUMITR 255 10 MAR 25, you can compare the effects of market volatilities on Boeing and SUMITR 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 SUMITR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and SUMITR.
Diversification Opportunities for Boeing and SUMITR
Excellent diversification
The 3 months correlation between Boeing and SUMITR is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and SUMITR 255 10 MAR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUMITR 255 10 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 SUMITR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUMITR 255 10 has no effect on the direction of Boeing i.e., Boeing and SUMITR go up and down completely randomly.
Pair Corralation between Boeing and SUMITR
Allowing for the 90-day total investment horizon The Boeing is expected to under-perform the SUMITR. In addition to that, Boeing is 5.05 times more volatile than SUMITR 255 10 MAR 25. It trades about -0.03 of its total potential returns per unit of risk. SUMITR 255 10 MAR 25 is currently generating about 0.05 per unit of volatility. If you would invest 9,403 in SUMITR 255 10 MAR 25 on August 27, 2024 and sell it today you would earn a total of 169.00 from holding SUMITR 255 10 MAR 25 or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 22.2% |
| Values | Daily Returns |
The Boeing vs. SUMITR 255 10 MAR 25
Performance |
| Timeline |
| Boeing |
| SUMITR 255 10 |
Boeing and SUMITR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and SUMITR
The main advantage of trading using opposite Boeing and SUMITR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, SUMITR 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 SUMITR will offset losses from the drop in SUMITR's long position.The idea behind The Boeing and SUMITR 255 10 MAR 25 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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