Correlation Between GE Aerospace and 05565QDH8
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By analyzing existing cross correlation between GE Aerospace and BP CAP MKTS, you can compare the effects of market volatilities on GE Aerospace and 05565QDH8 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 05565QDH8. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and 05565QDH8.
Diversification Opportunities for GE Aerospace and 05565QDH8
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between GE Aerospace and 05565QDH8 is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and BP CAP MKTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BP CAP MKTS 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 05565QDH8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BP CAP MKTS has no effect on the direction of GE Aerospace i.e., GE Aerospace and 05565QDH8 go up and down completely randomly.
Pair Corralation between GE Aerospace and 05565QDH8
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 3.97 times more return on investment than 05565QDH8. However, GE Aerospace is 3.97 times more volatile than BP CAP MKTS. It trades about 0.11 of its potential returns per unit of risk. BP CAP MKTS is currently generating about -0.02 per unit of risk. If you would invest 8,822 in GE Aerospace on September 12, 2024 and sell it today you would earn a total of 8,305 from holding GE Aerospace or generate 94.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
GE Aerospace vs. BP CAP MKTS
Performance |
| Timeline |
| GE Aerospace |
| BP CAP MKTS |
GE Aerospace and 05565QDH8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and 05565QDH8
The main advantage of trading using opposite GE Aerospace and 05565QDH8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, 05565QDH8 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 05565QDH8 will offset losses from the drop in 05565QDH8's long position.| GE Aerospace vs. Victory Integrity Smallmid Cap | GE Aerospace vs. Hilton Worldwide Holdings | GE Aerospace vs. NVIDIA | GE Aerospace vs. JPMorgan Chase Co |
| 05565QDH8 vs. Cleantech Power Corp | 05565QDH8 vs. Eastman Chemical | 05565QDH8 vs. The Mosaic | 05565QDH8 vs. Tencent Music Entertainment |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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