Correlation Between GE Aerospace and AUTODESK
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By analyzing existing cross correlation between GE Aerospace and AUTODESK INC 4375, you can compare the effects of market volatilities on GE Aerospace and AUTODESK 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 AUTODESK. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and AUTODESK.
Diversification Opportunities for GE Aerospace and AUTODESK
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GE Aerospace and AUTODESK is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and AUTODESK INC 4375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUTODESK INC 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 AUTODESK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUTODESK INC 4375 has no effect on the direction of GE Aerospace i.e., GE Aerospace and AUTODESK go up and down completely randomly.
Pair Corralation between GE Aerospace and AUTODESK
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 3.53 times more return on investment than AUTODESK. However, GE Aerospace is 3.53 times more volatile than AUTODESK INC 4375. It trades about 0.37 of its potential returns per unit of risk. AUTODESK INC 4375 is currently generating about -0.23 per unit of risk. If you would invest 17,187 in GE Aerospace on October 26, 2024 and sell it today you would earn a total of 2,488 from holding GE Aerospace or generate 14.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.47% |
| Values | Daily Returns |
GE Aerospace vs. AUTODESK INC 4375
Performance |
| Timeline |
| GE Aerospace |
| AUTODESK INC 4375 |
GE Aerospace and AUTODESK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and AUTODESK
The main advantage of trading using opposite GE Aerospace and AUTODESK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, AUTODESK 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 AUTODESK will offset losses from the drop in AUTODESK's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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