Correlation Between Wabash National and BOEING

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Wabash National and BOEING at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Wabash National and BOEING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wabash National and BOEING CO, you can compare the effects of market volatilities on Wabash National 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 Wabash National with a short position of BOEING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wabash National and BOEING.

Diversification Opportunities for Wabash National and BOEING

0.05
  Correlation Coefficient

Significant diversification

The 3 months correlation between Wabash and BOEING is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Wabash National and BOEING CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOEING CO and Wabash National 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 Wabash National 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 Wabash National i.e., Wabash National and BOEING go up and down completely randomly.

Pair Corralation between Wabash National and BOEING

Considering the 90-day investment horizon Wabash National is expected to generate 959.97 times less return on investment than BOEING. But when comparing it to its historical volatility, Wabash National is 35.5 times less risky than BOEING. It trades about 0.0 of its potential returns per unit of risk. BOEING CO is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  7,285  in BOEING CO on September 12, 2024 and sell it today you would earn a total of  407.00  from holding BOEING CO or generate 5.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy86.46%
ValuesDaily Returns

Wabash National  vs.  BOEING CO

 Performance 
       Timeline  
Wabash National 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Wabash National are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal basic indicators, Wabash National may actually be approaching a critical reversion point that can send shares even higher in January 2025.
BOEING CO 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in BOEING CO are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, BOEING is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Wabash National and BOEING Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Wabash National and BOEING

The main advantage of trading using opposite Wabash National and BOEING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wabash National 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 Wabash National and BOEING CO 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Other Complementary Tools

Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
FinTech Suite
Use AI to screen and filter profitable investment opportunities