Correlation Between GE Aerospace and ACGCAP
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By analyzing existing cross correlation between GE Aerospace and ACGCAP 195 30 JAN 26, you can compare the effects of market volatilities on GE Aerospace and ACGCAP 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 ACGCAP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and ACGCAP.
Diversification Opportunities for GE Aerospace and ACGCAP
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between GE Aerospace and ACGCAP is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and ACGCAP 195 30 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACGCAP 195 30 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 ACGCAP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACGCAP 195 30 has no effect on the direction of GE Aerospace i.e., GE Aerospace and ACGCAP go up and down completely randomly.
Pair Corralation between GE Aerospace and ACGCAP
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 0.66 times more return on investment than ACGCAP. However, GE Aerospace is 1.51 times less risky than ACGCAP. It trades about 0.15 of its potential returns per unit of risk. ACGCAP 195 30 JAN 26 is currently generating about -0.06 per unit of risk. If you would invest 18,043 in GE Aerospace on November 3, 2024 and sell it today you would earn a total of 2,314 from holding GE Aerospace or generate 12.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.05% |
| Values | Daily Returns |
GE Aerospace vs. ACGCAP 195 30 JAN 26
Performance |
| Timeline |
| GE Aerospace |
| ACGCAP 195 30 |
GE Aerospace and ACGCAP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and ACGCAP
The main advantage of trading using opposite GE Aerospace and ACGCAP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, ACGCAP 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 ACGCAP will offset losses from the drop in ACGCAP's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| ACGCAP vs. Cedar Realty Trust | ACGCAP vs. Western Acquisition Ventures | ACGCAP vs. Inflection Point Acquisition | ACGCAP vs. Proficient Auto Logistics, |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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