Correlation Between SBM Offshore and BOEING
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By analyzing existing cross correlation between SBM Offshore NV and BOEING 5875 percent, you can compare the effects of market volatilities on SBM Offshore 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 SBM Offshore with a short position of BOEING. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM Offshore and BOEING.
Diversification Opportunities for SBM Offshore and BOEING
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SBM and BOEING is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding SBM Offshore NV and BOEING 5875 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOEING 5875 percent and SBM Offshore 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 SBM Offshore NV 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 5875 percent has no effect on the direction of SBM Offshore i.e., SBM Offshore and BOEING go up and down completely randomly.
Pair Corralation between SBM Offshore and BOEING
Assuming the 90 days horizon SBM Offshore is expected to generate 1.96 times less return on investment than BOEING. But when comparing it to its historical volatility, SBM Offshore NV is 2.22 times less risky than BOEING. It trades about 0.14 of its potential returns per unit of risk. BOEING 5875 percent is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 9,568 in BOEING 5875 percent on September 1, 2024 and sell it today you would earn a total of 434.00 from holding BOEING 5875 percent or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBM Offshore NV vs. BOEING 5875 percent
Performance |
| Timeline |
| SBM Offshore NV |
| BOEING 5875 percent |
SBM Offshore and BOEING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM Offshore and BOEING
The main advantage of trading using opposite SBM Offshore and BOEING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM Offshore 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.| SBM Offshore vs. Expro Group Holdings | SBM Offshore vs. ChampionX | SBM Offshore vs. Ranger Energy Services | SBM Offshore vs. Cactus Inc |
| BOEING vs. JD Sports Fashion | BOEING vs. Jutal Offshore Oil | BOEING vs. United Parks Resorts | BOEING vs. SBM Offshore NV |
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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