Correlation Between GE Aerospace and APACHE
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By analyzing existing cross correlation between GE Aerospace and APACHE P 4375, you can compare the effects of market volatilities on GE Aerospace and APACHE 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 APACHE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and APACHE.
Diversification Opportunities for GE Aerospace and APACHE
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between GE Aerospace and APACHE is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and APACHE P 4375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APACHE P 4375 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 APACHE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APACHE P 4375 has no effect on the direction of GE Aerospace i.e., GE Aerospace and APACHE go up and down completely randomly.
Pair Corralation between GE Aerospace and APACHE
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 3.26 times more return on investment than APACHE. However, GE Aerospace is 3.26 times more volatile than APACHE P 4375. It trades about 0.15 of its potential returns per unit of risk. APACHE P 4375 is currently generating about 0.02 per unit of risk. If you would invest 10,146 in GE Aerospace on November 9, 2024 and sell it today you would earn a total of 10,460 from holding GE Aerospace or generate 103.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.76% |
| Values | Daily Returns |
GE Aerospace vs. APACHE P 4375
Performance |
| Timeline |
| GE Aerospace |
| APACHE P 4375 |
GE Aerospace and APACHE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and APACHE
The main advantage of trading using opposite GE Aerospace and APACHE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, APACHE 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 APACHE will offset losses from the drop in APACHE's long position.| GE Aerospace vs. Great Western Minerals | GE Aerospace vs. Enterprise Bancorp | GE Aerospace vs. T Rowe Price | GE Aerospace vs. Aviat Networks |
| APACHE vs. Enersys | APACHE vs. MYT Netherlands Parent | APACHE vs. Weyco Group | APACHE vs. Cedar Realty Trust |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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