Correlation Between GE Aerospace and Antisense Therapeutics
Can any of the company-specific risk be diversified away by investing in both GE Aerospace and Antisense Therapeutics 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 Antisense Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Aerospace and Antisense Therapeutics Limited, you can compare the effects of market volatilities on GE Aerospace and Antisense Therapeutics 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 Antisense Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and Antisense Therapeutics.
Diversification Opportunities for GE Aerospace and Antisense Therapeutics
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GE Aerospace and Antisense is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Antisense Therapeutics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antisense Therapeutics 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 Antisense Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antisense Therapeutics has no effect on the direction of GE Aerospace i.e., GE Aerospace and Antisense Therapeutics go up and down completely randomly.
Pair Corralation between GE Aerospace and Antisense Therapeutics
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 0.36 times more return on investment than Antisense Therapeutics. However, GE Aerospace is 2.81 times less risky than Antisense Therapeutics. It trades about 0.03 of its potential returns per unit of risk. Antisense Therapeutics Limited is currently generating about -0.31 per unit of risk. If you would invest 17,974 in GE Aerospace on August 25, 2024 and sell it today you would earn a total of 141.00 from holding GE Aerospace or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GE Aerospace vs. Antisense Therapeutics Limited
Performance |
| Timeline |
| GE Aerospace |
| Antisense Therapeutics |
GE Aerospace and Antisense Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and Antisense Therapeutics
The main advantage of trading using opposite GE Aerospace and Antisense Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, Antisense Therapeutics 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 Antisense Therapeutics will offset losses from the drop in Antisense Therapeutics' long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| Antisense Therapeutics vs. Amexdrug | Antisense Therapeutics vs. Aion Therapeutic | Antisense Therapeutics vs. Alterola Biotech | Antisense Therapeutics vs. The BC Bud |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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