Correlation Between GE Aerospace and CARLISLE
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By analyzing existing cross correlation between GE Aerospace and CARLISLE INC 375, you can compare the effects of market volatilities on GE Aerospace and CARLISLE 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 CARLISLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and CARLISLE.
Diversification Opportunities for GE Aerospace and CARLISLE
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between GE Aerospace and CARLISLE is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and CARLISLE INC 375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARLISLE INC 375 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 CARLISLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARLISLE INC 375 has no effect on the direction of GE Aerospace i.e., GE Aerospace and CARLISLE go up and down completely randomly.
Pair Corralation between GE Aerospace and CARLISLE
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 2.59 times more return on investment than CARLISLE. However, GE Aerospace is 2.59 times more volatile than CARLISLE INC 375. It trades about 0.19 of its potential returns per unit of risk. CARLISLE INC 375 is currently generating about -0.18 per unit of risk. If you would invest 17,170 in GE Aerospace on September 2, 2024 and sell it today you would earn a total of 1,046 from holding GE Aerospace or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
GE Aerospace vs. CARLISLE INC 375
Performance |
| Timeline |
| GE Aerospace |
| CARLISLE INC 375 |
GE Aerospace and CARLISLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and CARLISLE
The main advantage of trading using opposite GE Aerospace and CARLISLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, CARLISLE 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 CARLISLE will offset losses from the drop in CARLISLE's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| CARLISLE vs. AEP TEX INC | CARLISLE vs. US BANK NATIONAL | CARLISLE vs. Bank of America | CARLISLE 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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