Correlation Between Dana and BOEING
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By analyzing existing cross correlation between Dana Inc and BOEING 28 percent, you can compare the effects of market volatilities on Dana 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 Dana with a short position of BOEING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana and BOEING.
Diversification Opportunities for Dana and BOEING
Very weak diversification
The 3 months correlation between Dana and BOEING is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dana Inc and BOEING 28 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOEING 28 percent and Dana 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 Dana Inc 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 28 percent has no effect on the direction of Dana i.e., Dana and BOEING go up and down completely randomly.
Pair Corralation between Dana and BOEING
Considering the 90-day investment horizon Dana Inc is expected to under-perform the BOEING. In addition to that, Dana is 4.92 times more volatile than BOEING 28 percent. It trades about -0.01 of its total potential returns per unit of risk. BOEING 28 percent is currently generating about 0.01 per unit of volatility. If you would invest 9,094 in BOEING 28 percent on September 1, 2024 and sell it today you would earn a total of 142.00 from holding BOEING 28 percent or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.42% |
| Values | Daily Returns |
Dana Inc vs. BOEING 28 percent
Performance |
| Timeline |
| Dana Inc |
| BOEING 28 percent |
Dana and BOEING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana and BOEING
The main advantage of trading using opposite Dana and BOEING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana 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.The idea behind Dana Inc and BOEING 28 percent 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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