Correlation Between Rivian Automotive and Boeing

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

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

Diversification Opportunities for Rivian Automotive and Boeing

-0.26

Correlation Coefficient

Rivian Automotive  Boeing

Very good diversification

The 3 months correlation between Rivian and Boeing is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Rivian Automotive and The Boeing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boeing and Rivian Automotive 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 Rivian Automotive 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 Rivian Automotive i.e., Rivian Automotive and Boeing go up and down completely randomly.

Pair Corralation between Rivian Automotive and Boeing

Given the investment horizon of 90 days Rivian Automotive is expected to under-perform the Boeing. In addition to that, Rivian Automotive is 1.57 times more volatile than The Boeing. It trades about -0.04 of its total potential returns per unit of risk. The Boeing is currently generating about 0.17 per unit of volatility. If you would invest  18,646  in The Boeing on May 5, 2025 and sell it today you would earn a total of  3,544  from holding The Boeing or generate 19.01% return on investment over 90 days.

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

Rivian Automotive  vs.  The Boeing

Rivian Automotive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Rivian Automotive has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Boeing

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Boeing are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Boeing sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Rivian Automotive and Boeing

The main advantage of trading using opposite Rivian Automotive and Boeing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rivian Automotive 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 Rivian Automotive and The Boeing 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.