Correlation Between GE Aerospace and 1248EPCB7
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By analyzing existing cross correlation between GE Aerospace and CCO Holdings 5375, you can compare the effects of market volatilities on GE Aerospace and 1248EPCB7 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 1248EPCB7. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and 1248EPCB7.
Diversification Opportunities for GE Aerospace and 1248EPCB7
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GE Aerospace and 1248EPCB7 is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and CCO Holdings 5375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCO Holdings 5375 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 1248EPCB7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCO Holdings 5375 has no effect on the direction of GE Aerospace i.e., GE Aerospace and 1248EPCB7 go up and down completely randomly.
Pair Corralation between GE Aerospace and 1248EPCB7
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 2.27 times more return on investment than 1248EPCB7. However, GE Aerospace is 2.27 times more volatile than CCO Holdings 5375. It trades about 0.19 of its potential returns per unit of risk. CCO Holdings 5375 is currently generating about -0.05 per unit of risk. If you would invest 17,178 in GE Aerospace on September 1, 2024 and sell it today you would earn a total of 1,038 from holding GE Aerospace or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
GE Aerospace vs. CCO Holdings 5375
Performance |
| Timeline |
| GE Aerospace |
| CCO Holdings 5375 |
GE Aerospace and 1248EPCB7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and 1248EPCB7
The main advantage of trading using opposite GE Aerospace and 1248EPCB7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, 1248EPCB7 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 1248EPCB7 will offset losses from the drop in 1248EPCB7's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| 1248EPCB7 vs. AEP TEX INC | 1248EPCB7 vs. US BANK NATIONAL | 1248EPCB7 vs. Bank of America | 1248EPCB7 vs. GE Aerospace |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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