Correlation Between Boeing and Standard Lithium
Can any of the company-specific risk be diversified away by investing in both Boeing and Standard Lithium 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 Standard Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and Standard Lithium, you can compare the effects of market volatilities on Boeing and Standard Lithium 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 Standard Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Standard Lithium.
Diversification Opportunities for Boeing and Standard Lithium
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boeing and Standard is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Standard Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Lithium 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 Standard Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Lithium has no effect on the direction of Boeing i.e., Boeing and Standard Lithium go up and down completely randomly.
Pair Corralation between Boeing and Standard Lithium
Allowing for the 90-day total investment horizon The Boeing is expected to under-perform the Standard Lithium. But the stock apears to be less risky and, when comparing its historical volatility, The Boeing is 3.63 times less risky than Standard Lithium. The stock trades about -0.06 of its potential returns per unit of risk. The Standard Lithium is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 261.00 in Standard Lithium on July 21, 2025 and sell it today you would earn a total of 169.00 from holding Standard Lithium or generate 64.75% 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. Standard Lithium
Performance |
| Timeline |
| Boeing |
| Standard Lithium |
Boeing and Standard Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boeing and Standard Lithium
The main advantage of trading using opposite Boeing and Standard Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing position performs unexpectedly, Standard Lithium 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 Standard Lithium will offset losses from the drop in Standard Lithium's long position.| Boeing vs. Digi Power X | Boeing vs. Japan Airlines Ltd | Boeing vs. Amtech Systems | Boeing vs. Courtside Group, Common |
| Standard Lithium vs. Ferroglobe PLC | Standard Lithium vs. TMC the metals | Standard Lithium vs. Compass Minerals International | Standard Lithium vs. Stepan Company |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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