Correlation Between GE Aerospace and Endexx Corp
Can any of the company-specific risk be diversified away by investing in both GE Aerospace and Endexx Corp 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 Endexx Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Aerospace and Endexx Corp, you can compare the effects of market volatilities on GE Aerospace and Endexx Corp 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 Endexx Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and Endexx Corp.
Diversification Opportunities for GE Aerospace and Endexx Corp
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GE Aerospace and Endexx is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Endexx Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endexx Corp 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 Endexx Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endexx Corp has no effect on the direction of GE Aerospace i.e., GE Aerospace and Endexx Corp go up and down completely randomly.
Pair Corralation between GE Aerospace and Endexx Corp
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 0.18 times more return on investment than Endexx Corp. However, GE Aerospace is 5.44 times less risky than Endexx Corp. It trades about 0.19 of its potential returns per unit of risk. Endexx Corp is currently generating about -0.02 per unit of risk. If you would invest 17,178 in GE Aerospace on September 1, 2024 and sell it today you would earn a total of 1,038 from holding GE Aerospace or generate 6.04% 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. Endexx Corp
Performance |
| Timeline |
| GE Aerospace |
| Endexx Corp |
GE Aerospace and Endexx Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and Endexx Corp
The main advantage of trading using opposite GE Aerospace and Endexx Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, Endexx Corp 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 Endexx Corp will offset losses from the drop in Endexx Corp's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| Endexx Corp vs. Holloman Energy Corp | Endexx Corp vs. cbdMD Inc | Endexx Corp vs. Evolus Inc | Endexx Corp vs. CV Sciences |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |