Correlation Between GE Aerospace and Ab High
Can any of the company-specific risk be diversified away by investing in both GE Aerospace and Ab High 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 Ab High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Aerospace and Ab High Yield, you can compare the effects of market volatilities on GE Aerospace and Ab High 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 Ab High. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and Ab High.
Diversification Opportunities for GE Aerospace and Ab High
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GE Aerospace and HIZYX is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Ab High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab High Yield 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 Ab High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab High Yield has no effect on the direction of GE Aerospace i.e., GE Aerospace and Ab High go up and down completely randomly.
Pair Corralation between GE Aerospace and Ab High
If you would invest 16,095 in GE Aerospace on August 30, 2024 and sell it today you would earn a total of 1,965 from holding GE Aerospace or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
GE Aerospace vs. Ab High Yield
Performance |
| Timeline |
| GE Aerospace |
| Ab High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GE Aerospace and Ab High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and Ab High
The main advantage of trading using opposite GE Aerospace and Ab High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, Ab High 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 Ab High will offset losses from the drop in Ab High's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| Ab High vs. Pia High Yield | Ab High vs. Pace High Yield | Ab High vs. Prudential High Yield | Ab High vs. Victory High Yield |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |