Correlation Between Boeing and Exeo Entertainment

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

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

Diversification Opportunities for Boeing and Exeo Entertainment

-0.56

Correlation Coefficient

Boeing  Exeo Entertainment

Excellent diversification

The 3 months correlation between Boeing and Exeo is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Exeo Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exeo Entertainment 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 Exeo Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exeo Entertainment has no effect on the direction of Boeing i.e., Boeing and Exeo Entertainment go up and down completely randomly.

Pair Corralation between Boeing and Exeo Entertainment

If you would invest  0.02  in Exeo Entertainment on February 6, 2024 and sell it today you would earn a total of  0.00  from holding Exeo Entertainment or generate 0.0% return on investment over 90 days.

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

The Boeing  vs.  Exeo Entertainment

Boeing

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days The Boeing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Exeo Entertainment

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Exeo Entertainment are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Exeo Entertainment displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Boeing and Exeo Entertainment

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

The idea behind The Boeing and Exeo Entertainment 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.