Correlation Between GE Aerospace and Bank Of Montreal
Can any of the company-specific risk be diversified away by investing in both GE Aerospace and Bank Of Montreal 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 Bank Of Montreal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Aerospace and Bank Of Montreal, you can compare the effects of market volatilities on GE Aerospace and Bank Of Montreal 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 Bank Of Montreal. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and Bank Of Montreal.
Diversification Opportunities for GE Aerospace and Bank Of Montreal
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GE Aerospace and Bank is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Bank Of Montreal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Of Montreal 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 Bank Of Montreal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Of Montreal has no effect on the direction of GE Aerospace i.e., GE Aerospace and Bank Of Montreal go up and down completely randomly.
Pair Corralation between GE Aerospace and Bank Of Montreal
If you would invest 17,666 in GE Aerospace on August 23, 2024 and sell it today you would earn a total of 204.00 from holding GE Aerospace or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
GE Aerospace vs. Bank Of Montreal
Performance |
| Timeline |
| GE Aerospace |
| Bank Of Montreal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GE Aerospace and Bank Of Montreal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and Bank Of Montreal
The main advantage of trading using opposite GE Aerospace and Bank Of Montreal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, Bank Of Montreal 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 Bank Of Montreal will offset losses from the drop in Bank Of Montreal's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Small Cap Core | GE Aerospace vs. Freedom Holding Corp | GE Aerospace vs. Gfl Environmental Holdings |
| Bank Of Montreal vs. ProShares Ultra SP500 | Bank Of Montreal vs. ProShares Ultra QQQ | Bank Of Montreal vs. ProShares UltraPro SP500 | Bank Of Montreal vs. Direxion Daily Technology |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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