Correlation Between Boeing and Global X

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

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

Diversification Opportunities for Boeing and Global X

-0.74

Correlation Coefficient

Boeing  Global X

Pay attention - limited upside

The 3 months correlation between Boeing and Global is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Global X Uranium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Uranium 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Uranium has no effect on the direction of Boeing i.e., Boeing and Global X go up and down completely randomly.

Pair Corralation between Boeing and Global X

Allowing for the 90-day total investment horizon The Boeing is expected to under-perform the Global X. But the stock apears to be less risky and, when comparing its historical volatility, The Boeing is 1.61 times less risky than Global X. The stock trades about -0.15 of its potential returns per unit of risk. The Global X Uranium is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  2,723  in Global X Uranium on October 21, 2024 and sell it today you would earn a total of  80.00  from holding Global X Uranium or generate 2.94% return on investment over 90 days.

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

The Boeing  vs.  Global X Uranium

Boeing

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in The Boeing are ranked lower than 5 (%) 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 February 2025.

Global X Uranium

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global X Uranium has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Etf's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

Pair Trading with Boeing and Global X

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

The idea behind The Boeing and Global X Uranium 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.

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 Stocks Directory module to find actively traded stocks across global markets.