Correlation Between FedEx and Boeing
Can any of the company-specific risk be diversified away by investing in both FedEx 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 FedEx and Boeing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FedEx and The Boeing, you can compare the effects of market volatilities on FedEx 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 FedEx with a short position of Boeing. Check out your portfolio center. Please also check ongoing floating volatility patterns of FedEx and Boeing.
Diversification Opportunities for FedEx and Boeing
Pay attention - limited upside
The 3 months correlation between FedEx and Boeing is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding FedEx and The Boeing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boeing and FedEx 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 FedEx 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 FedEx i.e., FedEx and Boeing go up and down completely randomly.
Pair Corralation between FedEx and Boeing
Considering the 90-day investment horizon FedEx is expected to generate 0.86 times more return on investment than Boeing. However, FedEx is 1.16 times less risky than Boeing. It trades about 0.23 of its potential returns per unit of risk. The Boeing is currently generating about -0.2 per unit of risk. If you would invest 22,275 in FedEx on August 30, 2025 and sell it today you would earn a total of 5,286 from holding FedEx or generate 23.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FedEx vs. The Boeing
Performance |
| Timeline |
| FedEx |
| Boeing |
FedEx and Boeing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FedEx and Boeing
The main advantage of trading using opposite FedEx and Boeing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FedEx 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.| FedEx vs. ConAgra Foods | FedEx vs. Astral Foods Limited | FedEx vs. Shenzhen Investment Holdings | FedEx vs. MGIC Investment Corp |
| Boeing vs. Summit Bank Group | Boeing vs. Brookfield Office Properties | Boeing vs. Malaga Financial | Boeing vs. Arrow Financial |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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