Correlation Between GE Aerospace and GraniteShares 125x
Can any of the company-specific risk be diversified away by investing in both GE Aerospace and GraniteShares 125x 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 GraniteShares 125x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Aerospace and GraniteShares 125x Long, you can compare the effects of market volatilities on GE Aerospace and GraniteShares 125x 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 GraniteShares 125x. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and GraniteShares 125x.
Diversification Opportunities for GE Aerospace and GraniteShares 125x
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between GE Aerospace and GraniteShares is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and GraniteShares 125x Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GraniteShares 125x Long 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 GraniteShares 125x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GraniteShares 125x Long has no effect on the direction of GE Aerospace i.e., GE Aerospace and GraniteShares 125x go up and down completely randomly.
Pair Corralation between GE Aerospace and GraniteShares 125x
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 0.59 times more return on investment than GraniteShares 125x. However, GE Aerospace is 1.7 times less risky than GraniteShares 125x. It trades about 0.44 of its potential returns per unit of risk. GraniteShares 125x Long is currently generating about -0.04 per unit of risk. If you would invest 17,196 in GE Aerospace on November 4, 2024 and sell it today you would earn a total of 3,161 from holding GE Aerospace or generate 18.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
GE Aerospace vs. GraniteShares 125x Long
Performance |
| Timeline |
| GE Aerospace |
| GraniteShares 125x Long |
GE Aerospace and GraniteShares 125x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and GraniteShares 125x
The main advantage of trading using opposite GE Aerospace and GraniteShares 125x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, GraniteShares 125x 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 GraniteShares 125x will offset losses from the drop in GraniteShares 125x's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| GraniteShares 125x vs. Canadian Solar | GraniteShares 125x vs. Emeren Group | GraniteShares 125x vs. First Solar | GraniteShares 125x vs. Ascent Solar Technologies, |
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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