Correlation Between China Resources and Boeing

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

By analyzing existing cross correlation between China Resources Beer and Boeing Co, you can compare the effects of market volatilities on China Resources 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 China Resources with a short position of Boeing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Resources and Boeing.

Diversification Opportunities for China Resources and Boeing

-0.79

Correlation Coefficient

China Resources  Boeing

Pay attention - limited upside

The 3 months correlation between China and Boeing is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding China Resources Beer and Boeing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boeing and China Resources 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 China Resources Beer 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 China Resources i.e., China Resources and Boeing go up and down completely randomly.

Pair Corralation between China Resources and Boeing

Assuming the 90 days horizon China Resources Beer is expected to under-perform the Boeing. But the pink sheet apears to be less risky and, when comparing its historical volatility, China Resources Beer is 1.16 times less risky than Boeing. The pink sheet trades about -0.11 of its potential returns per unit of risk. The Boeing Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  6,164  in Boeing Co on May 7, 2025 and sell it today you would earn a total of  930.00  from holding Boeing Co or generate 15.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

China Resources Beer  vs.  Boeing Co

China Resources Beer

Risk-Adjusted Performance

Very Weak

Over the last 90 days China Resources Beer has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward-looking signals remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Boeing

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Boeing Co are ranked lower than 12 (%) 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.

Pair Trading with China Resources and Boeing

The main advantage of trading using opposite China Resources and Boeing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Resources 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.

The idea behind China Resources Beer and Boeing Co 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.