Correlation Between Boeing and WESTLAKE
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By analyzing existing cross correlation between The Boeing and WESTLAKE CHEM P, you can compare the effects of market volatilities on Boeing and WESTLAKE 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 WESTLAKE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and WESTLAKE.
Diversification Opportunities for Boeing and WESTLAKE
Pay attention - limited upside
The 3 months correlation between Boeing and WESTLAKE is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and WESTLAKE CHEM P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESTLAKE CHEM P 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 WESTLAKE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESTLAKE CHEM P has no effect on the direction of Boeing i.e., Boeing and WESTLAKE go up and down completely randomly.
Pair Corralation between Boeing and WESTLAKE
Allowing for the 90-day total investment horizon The Boeing is expected to generate 2.58 times more return on investment than WESTLAKE. However, Boeing is 2.58 times more volatile than WESTLAKE CHEM P. It trades about 0.08 of its potential returns per unit of risk. WESTLAKE CHEM P is currently generating about 0.1 per unit of risk. If you would invest 17,516 in The Boeing on November 27, 2024 and sell it today you would earn a total of 475.00 from holding The Boeing or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 55.0% |
| Values | Daily Returns |
The Boeing vs. WESTLAKE CHEM P
Performance |
| Timeline |
| Boeing |
| WESTLAKE CHEM P |
Boeing and WESTLAKE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and WESTLAKE
The main advantage of trading using opposite Boeing and WESTLAKE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, WESTLAKE 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 WESTLAKE will offset losses from the drop in WESTLAKE's long position.The idea behind The Boeing and WESTLAKE CHEM P 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.| WESTLAKE vs. Aldel Financial II | WESTLAKE vs. EastGroup Properties | WESTLAKE vs. Inflection Point Acquisition | WESTLAKE vs. BJs Restaurants |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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