Correlation Between GE Aerospace and American Commerce
Can any of the company-specific risk be diversified away by investing in both GE Aerospace and American Commerce 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 GE Aerospace and American Commerce into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Aerospace and American Commerce Solutions, you can compare the effects of market volatilities on GE Aerospace and American Commerce 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 GE Aerospace with a short position of American Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and American Commerce.
Diversification Opportunities for GE Aerospace and American Commerce
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GE Aerospace and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and American Commerce Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Commerce and GE Aerospace 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 GE Aerospace are associated (or correlated) with American Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Commerce has no effect on the direction of GE Aerospace i.e., GE Aerospace and American Commerce go up and down completely randomly.
Pair Corralation between GE Aerospace and American Commerce
If you would invest 8,884 in GE Aerospace on September 12, 2024 and sell it today you would earn a total of 8,008 from holding GE Aerospace or generate 90.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
GE Aerospace vs. American Commerce Solutions
Performance |
| Timeline |
| GE Aerospace |
| American Commerce |
GE Aerospace and American Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and American Commerce
The main advantage of trading using opposite GE Aerospace and American Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, American Commerce 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 American Commerce will offset losses from the drop in American Commerce's long position.| GE Aerospace vs. Victory Integrity Smallmid Cap | GE Aerospace vs. Hilton Worldwide Holdings | GE Aerospace vs. NVIDIA | GE Aerospace vs. JPMorgan Chase Co |
| American Commerce vs. Aumann AG | American Commerce vs. Alfa Laval AB | American Commerce vs. Arista Power | American Commerce vs. Atlas Copco AB |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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