Correlation Between GE Aerospace and Dreyfus Government
Can any of the company-specific risk be diversified away by investing in both GE Aerospace and Dreyfus Government 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 Dreyfus Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Aerospace and Dreyfus Government Cash, you can compare the effects of market volatilities on GE Aerospace and Dreyfus Government 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 Dreyfus Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and Dreyfus Government.
Diversification Opportunities for GE Aerospace and Dreyfus Government
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GE Aerospace and Dreyfus is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Dreyfus Government Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Government Cash 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 Dreyfus Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Government Cash has no effect on the direction of GE Aerospace i.e., GE Aerospace and Dreyfus Government go up and down completely randomly.
Pair Corralation between GE Aerospace and Dreyfus Government
If you would invest 17,104 in GE Aerospace on October 10, 2024 and sell it today you would earn a total of 185.00 from holding GE Aerospace or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE Aerospace vs. Dreyfus Government Cash
Performance |
| Timeline |
| GE Aerospace |
| Dreyfus Government Cash |
GE Aerospace and Dreyfus Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and Dreyfus Government
The main advantage of trading using opposite GE Aerospace and Dreyfus Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, Dreyfus Government 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 Dreyfus Government will offset losses from the drop in Dreyfus Government's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| Dreyfus Government vs. Alpsalerian Energy Infrastructure | Dreyfus Government vs. Oil Gas Ultrasector | Dreyfus Government vs. Transamerica Mlp Energy | Dreyfus Government vs. Pimco Energy Tactical |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |