Correlation Between Boeing and CPI Aerostructures
Can any of the company-specific risk be diversified away by investing in both Boeing and CPI Aerostructures 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 CPI Aerostructures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boeing Co and CPI Aerostructures, you can compare the effects of market volatilities on Boeing and CPI Aerostructures 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 CPI Aerostructures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and CPI Aerostructures.
Diversification Opportunities for Boeing and CPI Aerostructures
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boeing and CPI is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Boeing Co and CPI Aerostructures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPI Aerostructures 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 Boeing Co are associated (or correlated) with CPI Aerostructures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPI Aerostructures has no effect on the direction of Boeing i.e., Boeing and CPI Aerostructures go up and down completely randomly.
Pair Corralation between Boeing and CPI Aerostructures
Assuming the 90 days horizon Boeing Co is expected to generate 0.95 times more return on investment than CPI Aerostructures. However, Boeing Co is 1.05 times less risky than CPI Aerostructures. It trades about 0.05 of its potential returns per unit of risk. CPI Aerostructures is currently generating about -0.07 per unit of risk. If you would invest 6,158 in Boeing Co on March 25, 2025 and sell it today you would earn a total of 381.00 from holding Boeing Co or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boeing Co vs. CPI Aerostructures
Performance |
| Timeline |
| Boeing |
| CPI Aerostructures |
Boeing and CPI Aerostructures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and CPI Aerostructures
The main advantage of trading using opposite Boeing and CPI Aerostructures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, CPI Aerostructures 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 CPI Aerostructures will offset losses from the drop in CPI Aerostructures' long position.| Boeing vs. Hudson Technologies | Boeing vs. Universal Insurance Holdings | Boeing vs. Cincinnati Financial | Boeing vs. Cosan SA ADR |
| CPI Aerostructures vs. Ducommun Incorporated | CPI Aerostructures vs. SIFCO Industries | CPI Aerostructures vs. Innovative Solutions and | CPI Aerostructures vs. Air Industries Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| 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 | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |