Correlation Between Exelon and Boeing
Can any of the company-specific risk be diversified away by investing in both Exelon and Boeing 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 Exelon and Boeing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exelon and The Boeing, you can compare the effects of market volatilities on Exelon and Boeing 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 Exelon with a short position of Boeing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exelon and Boeing.
Diversification Opportunities for Exelon and Boeing
Excellent diversification
The 3 months correlation between Exelon and Boeing is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Exelon and The Boeing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boeing and Exelon 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 Exelon are associated (or correlated) with Boeing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boeing has no effect on the direction of Exelon i.e., Exelon and Boeing go up and down completely randomly.
Pair Corralation between Exelon and Boeing
Considering the 90-day investment horizon Exelon is expected to generate 0.67 times more return on investment than Boeing. However, Exelon is 1.49 times less risky than Boeing. It trades about -0.1 of its potential returns per unit of risk. The Boeing is currently generating about -0.15 per unit of risk. If you would invest 3,660 in Exelon on January 18, 2024 and sell it today you would lose (85.00) from holding Exelon or give up 2.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Exelon vs. The Boeing
Performance |
Timeline |
Exelon |
Boeing |
Exelon and Boeing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Exelon and Boeing
The main advantage of trading using opposite Exelon and Boeing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exelon position performs unexpectedly, Boeing 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 Boeing will offset losses from the drop in Boeing's long position.Exelon vs. Centrais Eltricas Brasileiras | Exelon vs. Central Puerto SA | Exelon vs. CMS Energy | Exelon vs. Centrais Electricas Brasileiras |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |