Correlation Between GE Aerospace and EMQQ Emerging
Can any of the company-specific risk be diversified away by investing in both GE Aerospace and EMQQ Emerging 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 EMQQ Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Aerospace and EMQQ The Emerging, you can compare the effects of market volatilities on GE Aerospace and EMQQ Emerging 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 EMQQ Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and EMQQ Emerging.
Diversification Opportunities for GE Aerospace and EMQQ Emerging
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GE Aerospace and EMQQ is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and EMQQ The Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMQQ The Emerging 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 EMQQ Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMQQ The Emerging has no effect on the direction of GE Aerospace i.e., GE Aerospace and EMQQ Emerging go up and down completely randomly.
Pair Corralation between GE Aerospace and EMQQ Emerging
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.07 times more return on investment than EMQQ Emerging. However, GE Aerospace is 1.07 times more volatile than EMQQ The Emerging. It trades about 0.15 of its potential returns per unit of risk. EMQQ The Emerging is currently generating about 0.03 per unit of risk. If you would invest 5,228 in GE Aerospace on August 26, 2024 and sell it today you would earn a total of 12,887 from holding GE Aerospace or generate 246.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE Aerospace vs. EMQQ The Emerging
Performance |
| Timeline |
| GE Aerospace |
| EMQQ The Emerging |
GE Aerospace and EMQQ Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and EMQQ Emerging
The main advantage of trading using opposite GE Aerospace and EMQQ Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, EMQQ Emerging 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 EMQQ Emerging will offset losses from the drop in EMQQ Emerging's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| EMQQ Emerging vs. Invesco China Technology | EMQQ Emerging vs. Amplify Online Retail | EMQQ Emerging vs. KraneShares CSI China | EMQQ Emerging vs. Global X MSCI |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |