Correlation Between BOEING and Lululemon Athletica
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By analyzing existing cross correlation between BOEING CO and Lululemon Athletica, you can compare the effects of market volatilities on BOEING and Lululemon Athletica 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 Lululemon Athletica. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOEING and Lululemon Athletica.
Diversification Opportunities for BOEING and Lululemon Athletica
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BOEING and Lululemon is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding BOEING CO and Lululemon Athletica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lululemon Athletica 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 BOEING CO are associated (or correlated) with Lululemon Athletica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lululemon Athletica has no effect on the direction of BOEING i.e., BOEING and Lululemon Athletica go up and down completely randomly.
Pair Corralation between BOEING and Lululemon Athletica
Assuming the 90 days trading horizon BOEING CO is expected to generate 0.56 times more return on investment than Lululemon Athletica. However, BOEING CO is 1.77 times less risky than Lululemon Athletica. It trades about -0.05 of its potential returns per unit of risk. Lululemon Athletica is currently generating about -0.21 per unit of risk. If you would invest 9,500 in BOEING CO on November 27, 2024 and sell it today you would lose (132.00) from holding BOEING CO or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
BOEING CO vs. Lululemon Athletica
Performance |
| Timeline |
| BOEING CO |
| Lululemon Athletica |
BOEING and Lululemon Athletica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOEING and Lululemon Athletica
The main advantage of trading using opposite BOEING and Lululemon Athletica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOEING position performs unexpectedly, Lululemon Athletica 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 Lululemon Athletica will offset losses from the drop in Lululemon Athletica's long position.| BOEING vs. Parker Hannifin | BOEING vs. Conifer Holdings, 975 | BOEING vs. Tritent International Agriculture | BOEING vs. EMCOR Group |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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