Correlation Between GE Aerospace and Turtle Beach
Can any of the company-specific risk be diversified away by investing in both GE Aerospace and Turtle Beach 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 Turtle Beach into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Aerospace and Turtle Beach Corp, you can compare the effects of market volatilities on GE Aerospace and Turtle Beach 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 Turtle Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and Turtle Beach.
Diversification Opportunities for GE Aerospace and Turtle Beach
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between GE Aerospace and Turtle is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Turtle Beach Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turtle Beach 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 Turtle Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turtle Beach Corp has no effect on the direction of GE Aerospace i.e., GE Aerospace and Turtle Beach go up and down completely randomly.
Pair Corralation between GE Aerospace and Turtle Beach
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.28 times more return on investment than Turtle Beach. However, GE Aerospace is 1.28 times more volatile than Turtle Beach Corp. It trades about 0.47 of its potential returns per unit of risk. Turtle Beach Corp is currently generating about 0.16 per unit of risk. If you would invest 16,859 in GE Aerospace on November 3, 2024 and sell it today you would earn a total of 3,498 from holding GE Aerospace or generate 20.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 23.81% |
| Values | Daily Returns |
GE Aerospace vs. Turtle Beach Corp
Performance |
| Timeline |
| GE Aerospace |
| Turtle Beach Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
GE Aerospace and Turtle Beach Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and Turtle Beach
The main advantage of trading using opposite GE Aerospace and Turtle Beach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, Turtle Beach 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 Turtle Beach will offset losses from the drop in Turtle Beach's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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