Correlation Between GE Aerospace and AMGEN
Specify exactly 2 symbols:
By analyzing existing cross correlation between GE Aerospace and AMGEN INC 44, you can compare the effects of market volatilities on GE Aerospace and AMGEN 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 AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and AMGEN.
Diversification Opportunities for GE Aerospace and AMGEN
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GE Aerospace and AMGEN is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and AMGEN INC 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 44 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 AMGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGEN INC 44 has no effect on the direction of GE Aerospace i.e., GE Aerospace and AMGEN go up and down completely randomly.
Pair Corralation between GE Aerospace and AMGEN
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 2.4 times more return on investment than AMGEN. However, GE Aerospace is 2.4 times more volatile than AMGEN INC 44. It trades about 0.06 of its potential returns per unit of risk. AMGEN INC 44 is currently generating about 0.04 per unit of risk. If you would invest 16,095 in GE Aerospace on September 1, 2024 and sell it today you would earn a total of 2,121 from holding GE Aerospace or generate 13.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
GE Aerospace vs. AMGEN INC 44
Performance |
| Timeline |
| GE Aerospace |
| AMGEN INC 44 |
GE Aerospace and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and AMGEN
The main advantage of trading using opposite GE Aerospace and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, AMGEN 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 AMGEN will offset losses from the drop in AMGEN'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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |