Correlation Between GE Aerospace and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both GE Aerospace and Neuberger Berman 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 Neuberger Berman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Aerospace and Neuberger Berman New, you can compare the effects of market volatilities on GE Aerospace and Neuberger Berman 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 Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and Neuberger Berman.
Diversification Opportunities for GE Aerospace and Neuberger Berman
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GE Aerospace and Neuberger is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Neuberger Berman New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman New 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman New has no effect on the direction of GE Aerospace i.e., GE Aerospace and Neuberger Berman go up and down completely randomly.
Pair Corralation between GE Aerospace and Neuberger Berman
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 | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
GE Aerospace vs. Neuberger Berman New
Performance |
| Timeline |
| GE Aerospace |
| Neuberger Berman New |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GE Aerospace and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and Neuberger Berman
The main advantage of trading using opposite GE Aerospace and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman'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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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