Correlation Between GE Aerospace and CHUBB
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By analyzing existing cross correlation between GE Aerospace and CHUBB P 68, you can compare the effects of market volatilities on GE Aerospace and CHUBB 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 CHUBB. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and CHUBB.
Diversification Opportunities for GE Aerospace and CHUBB
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GE Aerospace and CHUBB is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and CHUBB P 68 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHUBB P 68 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 CHUBB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHUBB P 68 has no effect on the direction of GE Aerospace i.e., GE Aerospace and CHUBB go up and down completely randomly.
Pair Corralation between GE Aerospace and CHUBB
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 3.35 times more return on investment than CHUBB. However, GE Aerospace is 3.35 times more volatile than CHUBB P 68. It trades about 0.11 of its potential returns per unit of risk. CHUBB P 68 is currently generating about -0.02 per unit of risk. If you would invest 17,464 in GE Aerospace on August 31, 2024 and sell it today you would earn a total of 596.00 from holding GE Aerospace or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.36% |
| Values | Daily Returns |
GE Aerospace vs. CHUBB P 68
Performance |
| Timeline |
| GE Aerospace |
| CHUBB P 68 |
GE Aerospace and CHUBB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and CHUBB
The main advantage of trading using opposite GE Aerospace and CHUBB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, CHUBB 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 CHUBB will offset losses from the drop in CHUBB's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| CHUBB vs. NioCorp Developments Ltd | CHUBB vs. Highway Holdings Limited | CHUBB vs. Consol Energy | CHUBB vs. GMS Inc |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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