Correlation Between GE Aerospace and CHEVRON
Specify exactly 2 symbols:
By analyzing existing cross correlation between GE Aerospace and CHEVRON USA INC, you can compare the effects of market volatilities on GE Aerospace and CHEVRON 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 CHEVRON. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and CHEVRON.
Diversification Opportunities for GE Aerospace and CHEVRON
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GE Aerospace and CHEVRON is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and CHEVRON USA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHEVRON USA INC 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 CHEVRON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHEVRON USA INC has no effect on the direction of GE Aerospace i.e., GE Aerospace and CHEVRON go up and down completely randomly.
Pair Corralation between GE Aerospace and CHEVRON
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 2.2 times more return on investment than CHEVRON. However, GE Aerospace is 2.2 times more volatile than CHEVRON USA INC. It trades about 0.1 of its potential returns per unit of risk. CHEVRON USA INC is currently generating about -0.09 per unit of risk. If you would invest 16,397 in GE Aerospace on September 2, 2024 and sell it today you would earn a total of 1,819 from holding GE Aerospace or generate 11.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 87.5% |
| Values | Daily Returns |
GE Aerospace vs. CHEVRON USA INC
Performance |
| Timeline |
| GE Aerospace |
| CHEVRON USA INC |
GE Aerospace and CHEVRON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and CHEVRON
The main advantage of trading using opposite GE Aerospace and CHEVRON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, CHEVRON 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 CHEVRON will offset losses from the drop in CHEVRON's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| CHEVRON vs. AEP TEX INC | CHEVRON vs. US BANK NATIONAL | CHEVRON vs. Bank of America | CHEVRON 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |