Correlation Between QUEEN S and Boeing

Can any of the company-specific risk be diversified away by investing in both QUEEN S 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 QUEEN S and Boeing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between QUEEN S ROAD and The Boeing, you can compare the effects of market volatilities on QUEEN S 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 QUEEN S with a short position of Boeing. Check out your portfolio center. Please also check ongoing floating volatility patterns of QUEEN S and Boeing.

Diversification Opportunities for QUEEN S and Boeing

0.2

Correlation Coefficient

QUEEN S  Boeing

Modest diversification

The 3 months correlation between QUEEN and Boeing is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding QUEEN S ROAD and The Boeing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boeing and QUEEN S 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 QUEEN S ROAD 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 QUEEN S i.e., QUEEN S and Boeing go up and down completely randomly.

Pair Corralation between QUEEN S and Boeing

Assuming the 90 days horizon QUEEN S ROAD is expected to generate 2.01 times more return on investment than Boeing. However, QUEEN S is 2.01 times more volatile than The Boeing. It trades about 0.02 of its potential returns per unit of risk. The Boeing is currently generating about -0.01 per unit of risk. If you would invest  45.00  in QUEEN S ROAD on October 5, 2024 and sell it today you would earn a total of  2.00  from holding QUEEN S ROAD or generate 4.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

QUEEN S ROAD  vs.  The Boeing

QUEEN S ROAD

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days QUEEN S ROAD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, QUEEN S may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Boeing

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days The Boeing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively fragile basic indicators, Boeing unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with QUEEN S and Boeing

The main advantage of trading using opposite QUEEN S and Boeing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QUEEN S 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 QUEEN S ROAD and The Boeing 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.

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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.