Correlation Between GE Aerospace and ARAMARK
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By analyzing existing cross correlation between GE Aerospace and ARAMARK SVCS INC, you can compare the effects of market volatilities on GE Aerospace and ARAMARK 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 ARAMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and ARAMARK.
Diversification Opportunities for GE Aerospace and ARAMARK
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GE Aerospace and ARAMARK is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and ARAMARK SVCS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARAMARK SVCS 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 ARAMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARAMARK SVCS INC has no effect on the direction of GE Aerospace i.e., GE Aerospace and ARAMARK go up and down completely randomly.
Pair Corralation between GE Aerospace and ARAMARK
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 2.31 times more return on investment than ARAMARK. However, GE Aerospace is 2.31 times more volatile than ARAMARK SVCS INC. It trades about 0.16 of its potential returns per unit of risk. ARAMARK SVCS INC is currently generating about -0.28 per unit of risk. If you would invest 17,176 in GE Aerospace on September 4, 2024 and sell it today you would earn a total of 868.00 from holding GE Aerospace or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
GE Aerospace vs. ARAMARK SVCS INC
Performance |
| Timeline |
| GE Aerospace |
| ARAMARK SVCS INC |
GE Aerospace and ARAMARK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and ARAMARK
The main advantage of trading using opposite GE Aerospace and ARAMARK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, ARAMARK 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 ARAMARK will offset losses from the drop in ARAMARK's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| ARAMARK vs. Tandy Leather Factory | ARAMARK vs. Vera Bradley | ARAMARK vs. Acco Brands | ARAMARK vs. American Eagle Outfitters |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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