Correlation Between Boeing and Julius Bär

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

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

Diversification Opportunities for Boeing and Julius Bär

0.38

Correlation Coefficient

Boeing  Julius Bär

Weak diversification

The 3 months correlation between Boeing and Julius is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Julius Br Gruppe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Julius Br Gruppe 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 Julius Bär. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Julius Br Gruppe has no effect on the direction of Boeing i.e., Boeing and Julius Bär go up and down completely randomly.

Pair Corralation between Boeing and Julius Bär

Allowing for the 90-day total investment horizon The Boeing is expected to generate 0.68 times more return on investment than Julius Bär. However, The Boeing is 1.48 times less risky than Julius Bär. It trades about 0.12 of its potential returns per unit of risk. Julius Br Gruppe is currently generating about 0.03 per unit of risk. If you would invest  15,544  in The Boeing on November 29, 2024 and sell it today you would earn a total of  1,760  from holding The Boeing or generate 11.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.61%
Values	Daily Returns

The Boeing  vs.  Julius Br Gruppe

Boeing

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The Boeing are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Boeing may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Julius Br Gruppe

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Julius Br Gruppe are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Julius Bär is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Boeing and Julius Bär

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

The idea behind The Boeing and Julius Br Gruppe 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.