Correlation Between Boeing and Fidelity Summer

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

By analyzing existing cross correlation between The Boeing and Fidelity Summer Street, you can compare the effects of market volatilities on Boeing and Fidelity Summer 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 Fidelity Summer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Fidelity Summer.

Diversification Opportunities for Boeing and Fidelity Summer

-0.46

Correlation Coefficient

Boeing  Fidelity Summer

Very good diversification

The 3 months correlation between Boeing and Fidelity is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Fidelity Summer Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Summer Street 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 The Boeing are associated (or correlated) with Fidelity Summer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Summer Street has no effect on the direction of Boeing i.e., Boeing and Fidelity Summer go up and down completely randomly.

Pair Corralation between Boeing and Fidelity Summer

If you would invest  1,247  in Fidelity Summer Street on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Fidelity Summer Street or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

The Boeing  vs.  Fidelity Summer Street

Boeing

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Boeing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Boeing is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Summer Street

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fidelity Summer Street has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Fidelity Summer is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Boeing and Fidelity Summer

The main advantage of trading using opposite Boeing and Fidelity Summer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, Fidelity Summer 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 Fidelity Summer will offset losses from the drop in Fidelity Summer's long position.

The idea behind The Boeing and Fidelity Summer Street 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.