Correlation Between China Yuchai and Boeing

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both China Yuchai 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 Yuchai and Boeing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Yuchai International and Boeing Company, you can compare the effects of market volatilities on China Yuchai 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 Yuchai with a short position of Boeing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Yuchai and Boeing.

Diversification Opportunities for China Yuchai and Boeing

-0.05
  Correlation Coefficient

Good diversification

The 3 months correlation between China and Boeing is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding China Yuchai International and Boeing Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boeing Company and China Yuchai 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 Yuchai International 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 Company has no effect on the direction of China Yuchai i.e., China Yuchai and Boeing go up and down completely randomly.

Pair Corralation between China Yuchai and Boeing

Considering the 90-day investment horizon China Yuchai International is expected to generate 0.63 times more return on investment than Boeing. However, China Yuchai International is 1.59 times less risky than Boeing. It trades about -0.54 of its potential returns per unit of risk. Boeing Company is currently generating about -0.51 per unit of risk. If you would invest  866.00  in China Yuchai International on June 29, 2022 and sell it today you would lose (144.00)  from holding China Yuchai International or give up 16.63% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

China Yuchai International  vs.  Boeing Company

 Performance (%) 
       Timeline  
China Yuchai Interna 
China Performance
0 of 100
Over the last 90 days China Yuchai International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in October 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

China Price Channel

Boeing Company 
Boeing Performance
0 of 100
Over the last 90 days Boeing Company has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Boeing Price Channel

China Yuchai and Boeing Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with China Yuchai and Boeing

The main advantage of trading using opposite China Yuchai and Boeing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Yuchai 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.
China Yuchai vs. Clearwater Paper Corp
The idea behind China Yuchai International and Boeing Company 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.
Boeing vs. Kibush Capital Corp
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 Transaction History module to view history of all your transactions and understand their impact on performance.

Other Complementary Tools

Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go