Correlation Between GE Aerospace and 126408GS6
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By analyzing existing cross correlation between GE Aerospace and CSX P 622, you can compare the effects of market volatilities on GE Aerospace and 126408GS6 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 126408GS6. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and 126408GS6.
Diversification Opportunities for GE Aerospace and 126408GS6
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GE Aerospace and 126408GS6 is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and CSX P 622 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX P 622 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 126408GS6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX P 622 has no effect on the direction of GE Aerospace i.e., GE Aerospace and 126408GS6 go up and down completely randomly.
Pair Corralation between GE Aerospace and 126408GS6
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 15.08 times less return on investment than 126408GS6. But when comparing it to its historical volatility, GE Aerospace is 32.7 times less risky than 126408GS6. It trades about 0.11 of its potential returns per unit of risk. CSX P 622 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 10,876 in CSX P 622 on September 12, 2024 and sell it today you would lose (504.00) from holding CSX P 622 or give up 4.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.39% |
| Values | Daily Returns |
GE Aerospace vs. CSX P 622
Performance |
| Timeline |
| GE Aerospace |
| CSX P 622 |
GE Aerospace and 126408GS6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and 126408GS6
The main advantage of trading using opposite GE Aerospace and 126408GS6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, 126408GS6 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 126408GS6 will offset losses from the drop in 126408GS6'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 |
| 126408GS6 vs. The Mosaic | 126408GS6 vs. Stepan Company | 126408GS6 vs. Avient Corp | 126408GS6 vs. CF Industries Holdings |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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