Correlation Between Boeing and SEB SA
Can any of the company-specific risk be diversified away by investing in both Boeing and SEB SA 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 SEB SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and SEB SA, you can compare the effects of market volatilities on Boeing and SEB SA 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 SEB SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and SEB SA.
Diversification Opportunities for Boeing and SEB SA
Significant diversification
The 3 months correlation between Boeing and SEB is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and SEB SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEB SA 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 SEB SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEB SA has no effect on the direction of Boeing i.e., Boeing and SEB SA go up and down completely randomly.
Pair Corralation between Boeing and SEB SA
Allowing for the 90-day total investment horizon The Boeing is expected to generate 0.78 times more return on investment than SEB SA. However, The Boeing is 1.28 times less risky than SEB SA. It trades about 0.0 of its potential returns per unit of risk. SEB SA is currently generating about -0.09 per unit of risk. If you would invest 18,072 in The Boeing on December 27, 2024 and sell it today you would lose (217.00) from holding The Boeing or give up 1.2% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
The Boeing vs. SEB SA
Performance |
Timeline |
Boeing |
SEB SA |
Boeing and SEB SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Boeing and SEB SA
The main advantage of trading using opposite Boeing and SEB SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, SEB SA 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 SEB SA will offset losses from the drop in SEB SA's long position.Boeing vs. Raytheon Technologies Corp | Boeing vs. Northrop Grumman | Boeing vs. General Dynamics | Boeing vs. L3Harris Technologies |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Stocks Directory Find actively traded stocks across global markets | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |