Correlation Between GE Aerospace and Blucora
Can any of the company-specific risk be diversified away by investing in both GE Aerospace and Blucora 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 Blucora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Aerospace and Blucora, you can compare the effects of market volatilities on GE Aerospace and Blucora 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 Blucora. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and Blucora.
Diversification Opportunities for GE Aerospace and Blucora
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GE Aerospace and Blucora is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Blucora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blucora 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 Blucora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blucora has no effect on the direction of GE Aerospace i.e., GE Aerospace and Blucora go up and down completely randomly.
Pair Corralation between GE Aerospace and Blucora
If you would invest 16,204 in GE Aerospace on September 3, 2024 and sell it today you would earn a total of 2,012 from holding GE Aerospace or generate 12.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
GE Aerospace vs. Blucora
Performance |
| Timeline |
| GE Aerospace |
| Blucora |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GE Aerospace and Blucora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and Blucora
The main advantage of trading using opposite GE Aerospace and Blucora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, Blucora 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 Blucora will offset losses from the drop in Blucora's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| Blucora vs. The Wendys Co | Blucora vs. Dave Busters Entertainment | Blucora vs. Kura Sushi USA | Blucora vs. Sweetgreen |
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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