Correlation Between Boeing and LAMF Global

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

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

Diversification Opportunities for Boeing and LAMF Global

-0.37

Correlation Coefficient

Boeing  LAMF Global

Very good diversification

The 3 months correlation between Boeing and LAMF is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and LAMF Global Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAMF Global Ventures 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 LAMF Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAMF Global Ventures has no effect on the direction of Boeing i.e., Boeing and LAMF Global go up and down completely randomly.

Pair Corralation between Boeing and LAMF Global

If you would invest  15,704  in The Boeing on October 10, 2024 and sell it today you would earn a total of  1,547  from holding The Boeing or generate 9.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

The Boeing  vs.  LAMF Global Ventures

Boeing

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The Boeing are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Boeing sustained solid returns over the last few months and may actually be approaching a breakup point.

LAMF Global Ventures

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LAMF Global Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, LAMF Global is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Boeing and LAMF Global

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

The idea behind The Boeing and LAMF Global Ventures 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.