Correlation Between 00108WAF7 and BOEING
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By analyzing existing cross correlation between AEP TEX INC and BOEING CO, you can compare the effects of market volatilities on 00108WAF7 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 00108WAF7 with a short position of BOEING. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and BOEING.
Diversification Opportunities for 00108WAF7 and BOEING
Significant diversification
The 3 months correlation between 00108WAF7 and BOEING is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and BOEING CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOEING CO and 00108WAF7 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 AEP TEX 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 CO has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and BOEING go up and down completely randomly.
Pair Corralation between 00108WAF7 and BOEING
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 1.7 times more return on investment than BOEING. However, 00108WAF7 is 1.7 times more volatile than BOEING CO. It trades about 0.12 of its potential returns per unit of risk. BOEING CO is currently generating about 0.07 per unit of risk. If you would invest 7,765 in AEP TEX INC on September 1, 2024 and sell it today you would lose (676.00) from holding AEP TEX INC or give up 8.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 68.49% |
| Values | Daily Returns |
AEP TEX INC vs. BOEING CO
Performance |
| Timeline |
| AEP TEX INC |
| BOEING CO |
00108WAF7 and BOEING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and BOEING
The main advantage of trading using opposite 00108WAF7 and BOEING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 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.| 00108WAF7 vs. AKITA Drilling | 00108WAF7 vs. GameStop Corp | 00108WAF7 vs. Contagious Gaming | 00108WAF7 vs. Awilco Drilling PLC |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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