Correlation Between EVERSOURCE and Boeing
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By analyzing existing cross correlation between EVERSOURCE ENERGY 33 and The Boeing, you can compare the effects of market volatilities on EVERSOURCE 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 EVERSOURCE with a short position of Boeing. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVERSOURCE and Boeing.
Diversification Opportunities for EVERSOURCE and Boeing
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between EVERSOURCE and Boeing is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding EVERSOURCE ENERGY 33 and The Boeing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boeing and EVERSOURCE 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 EVERSOURCE ENERGY 33 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 has no effect on the direction of EVERSOURCE i.e., EVERSOURCE and Boeing go up and down completely randomly.
Pair Corralation between EVERSOURCE and Boeing
Assuming the 90 days trading horizon EVERSOURCE ENERGY 33 is expected to under-perform the Boeing. But the bond apears to be less risky and, when comparing its historical volatility, EVERSOURCE ENERGY 33 is 4.83 times less risky than Boeing. The bond trades about -0.08 of its potential returns per unit of risk. The The Boeing is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 15,459 in The Boeing on September 2, 2024 and sell it today you would earn a total of 85.00 from holding The Boeing or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
EVERSOURCE ENERGY 33 vs. The Boeing
Performance |
| Timeline |
| EVERSOURCE ENERGY |
| Boeing |
EVERSOURCE and Boeing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVERSOURCE and Boeing
The main advantage of trading using opposite EVERSOURCE and Boeing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVERSOURCE 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.| EVERSOURCE vs. Analog Devices | EVERSOURCE vs. Paysafe | EVERSOURCE vs. Asure Software | EVERSOURCE vs. Turning Point Brands |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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