Correlation Between GE Aerospace and ADOBE
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By analyzing existing cross correlation between GE Aerospace and ADOBE SYS INC, you can compare the effects of market volatilities on GE Aerospace and ADOBE 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 ADOBE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and ADOBE.
Diversification Opportunities for GE Aerospace and ADOBE
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between GE Aerospace and ADOBE is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and ADOBE SYS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADOBE SYS INC 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 ADOBE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADOBE SYS INC has no effect on the direction of GE Aerospace i.e., GE Aerospace and ADOBE go up and down completely randomly.
Pair Corralation between GE Aerospace and ADOBE
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 6.04 times more return on investment than ADOBE. However, GE Aerospace is 6.04 times more volatile than ADOBE SYS INC. It trades about 0.14 of its potential returns per unit of risk. ADOBE SYS INC is currently generating about 0.0 per unit of risk. If you would invest 8,848 in GE Aerospace on September 4, 2024 and sell it today you would earn a total of 9,196 from holding GE Aerospace or generate 103.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.97% |
| Values | Daily Returns |
GE Aerospace vs. ADOBE SYS INC
Performance |
| Timeline |
| GE Aerospace |
| ADOBE SYS INC |
GE Aerospace and ADOBE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and ADOBE
The main advantage of trading using opposite GE Aerospace and ADOBE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, ADOBE 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 ADOBE will offset losses from the drop in ADOBE'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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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