Correlation Between GE Aerospace and DWS
Can any of the company-specific risk be diversified away by investing in both GE Aerospace and DWS 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 DWS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Aerospace and DWS, you can compare the effects of market volatilities on GE Aerospace and DWS 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 DWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and DWS.
Diversification Opportunities for GE Aerospace and DWS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GE Aerospace and DWS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and DWS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DWS 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 DWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DWS has no effect on the direction of GE Aerospace i.e., GE Aerospace and DWS go up and down completely randomly.
Pair Corralation between GE Aerospace and DWS
If you would invest 19,446 in GE Aerospace on November 28, 2024 and sell it today you would earn a total of 950.50 from holding GE Aerospace or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
GE Aerospace vs. DWS
Performance |
| Timeline |
| GE Aerospace |
| DWS |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
GE Aerospace and DWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and DWS
The main advantage of trading using opposite GE Aerospace and DWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, DWS 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 DWS will offset losses from the drop in DWS's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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