Correlation Between GE Aerospace and BOEING
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By analyzing existing cross correlation between GE Aerospace and BOEING CO, you can compare the effects of market volatilities on GE Aerospace and BOEING 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 BOEING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and BOEING.
Diversification Opportunities for GE Aerospace and BOEING
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GE Aerospace and BOEING is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and BOEING CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOEING CO 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 BOEING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOEING CO has no effect on the direction of GE Aerospace i.e., GE Aerospace and BOEING go up and down completely randomly.
Pair Corralation between GE Aerospace and BOEING
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.27 times more return on investment than BOEING. However, GE Aerospace is 1.27 times more volatile than BOEING CO. It trades about 0.04 of its potential returns per unit of risk. BOEING CO is currently generating about 0.03 per unit of risk. If you would invest 16,803 in GE Aerospace on August 25, 2024 and sell it today you would earn a total of 1,312 from holding GE Aerospace or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.64% |
| Values | Daily Returns |
GE Aerospace vs. BOEING CO
Performance |
| Timeline |
| GE Aerospace |
| BOEING CO |
GE Aerospace and BOEING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and BOEING
The main advantage of trading using opposite GE Aerospace and BOEING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, BOEING 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 BOEING will offset losses from the drop in BOEING's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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