Correlation Between GE Aerospace and Allegheny
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By analyzing existing cross correlation between GE Aerospace and Allegheny Technologies 5875, you can compare the effects of market volatilities on GE Aerospace and Allegheny 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 Allegheny. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and Allegheny.
Diversification Opportunities for GE Aerospace and Allegheny
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between GE Aerospace and Allegheny is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Allegheny Technologies 5875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegheny Technologies 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 Allegheny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegheny Technologies has no effect on the direction of GE Aerospace i.e., GE Aerospace and Allegheny go up and down completely randomly.
Pair Corralation between GE Aerospace and Allegheny
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.4 times more return on investment than Allegheny. However, GE Aerospace is 1.4 times more volatile than Allegheny Technologies 5875. It trades about 0.16 of its potential returns per unit of risk. Allegheny Technologies 5875 is currently generating about 0.01 per unit of risk. If you would invest 4,871 in GE Aerospace on September 5, 2024 and sell it today you would earn a total of 13,201 from holding GE Aerospace or generate 271.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.57% |
| Values | Daily Returns |
GE Aerospace vs. Allegheny Technologies 5875
Performance |
| Timeline |
| GE Aerospace |
| Allegheny Technologies |
GE Aerospace and Allegheny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and Allegheny
The main advantage of trading using opposite GE Aerospace and Allegheny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, Allegheny 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 Allegheny will offset losses from the drop in Allegheny's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| Allegheny vs. The Travelers Companies | Allegheny vs. GE Aerospace | Allegheny vs. Walmart | Allegheny vs. Pfizer Inc |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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