Correlation Between Bassett Furniture and BOEING
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By analyzing existing cross correlation between Bassett Furniture Industries and BOEING CO, you can compare the effects of market volatilities on Bassett Furniture and BOEING 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 Bassett Furniture with a short position of BOEING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bassett Furniture and BOEING.
Diversification Opportunities for Bassett Furniture and BOEING
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bassett and BOEING is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bassett Furniture Industries and BOEING CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOEING CO and Bassett Furniture 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 Bassett Furniture Industries are associated (or correlated) with BOEING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOEING CO has no effect on the direction of Bassett Furniture i.e., Bassett Furniture and BOEING go up and down completely randomly.
Pair Corralation between Bassett Furniture and BOEING
Given the investment horizon of 90 days Bassett Furniture is expected to generate 1.51 times less return on investment than BOEING. In addition to that, Bassett Furniture is 1.33 times more volatile than BOEING CO. It trades about 0.01 of its total potential returns per unit of risk. BOEING CO is currently generating about 0.02 per unit of volatility. If you would invest 7,212 in BOEING CO on September 12, 2024 and sell it today you would earn a total of 480.00 from holding BOEING CO or generate 6.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.31% |
| Values | Daily Returns |
Bassett Furniture Industries vs. BOEING CO
Performance |
| Timeline |
| Bassett Furniture |
| BOEING CO |
Bassett Furniture and BOEING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bassett Furniture and BOEING
The main advantage of trading using opposite Bassett Furniture and BOEING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bassett Furniture position performs unexpectedly, BOEING 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 BOEING will offset losses from the drop in BOEING's long position.| Bassett Furniture vs. Hooker Furniture | Bassett Furniture vs. Flexsteel Industries | Bassett Furniture vs. Haverty Furniture Companies | Bassett Furniture vs. La Z Boy Incorporated |
| BOEING vs. Bassett Furniture Industries | BOEING vs. Hudson Pacific Properties | BOEING vs. LGI Homes | BOEING vs. GameStop Corp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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