Correlation Between GE Aerospace and Clean
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By analyzing existing cross correlation between GE Aerospace and Clean Harbors 5125, you can compare the effects of market volatilities on GE Aerospace and Clean 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 Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and Clean.
Diversification Opportunities for GE Aerospace and Clean
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GE Aerospace and Clean is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Clean Harbors 5125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Harbors 5125 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 Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Harbors 5125 has no effect on the direction of GE Aerospace i.e., GE Aerospace and Clean go up and down completely randomly.
Pair Corralation between GE Aerospace and Clean
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 3.59 times more return on investment than Clean. However, GE Aerospace is 3.59 times more volatile than Clean Harbors 5125. It trades about 0.15 of its potential returns per unit of risk. Clean Harbors 5125 is currently generating about -0.02 per unit of risk. If you would invest 9,482 in GE Aerospace on September 2, 2024 and sell it today you would earn a total of 8,734 from holding GE Aerospace or generate 92.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 71.37% |
| Values | Daily Returns |
GE Aerospace vs. Clean Harbors 5125
Performance |
| Timeline |
| GE Aerospace |
| Clean Harbors 5125 |
GE Aerospace and Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and Clean
The main advantage of trading using opposite GE Aerospace and Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, Clean 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 Clean will offset losses from the drop in Clean's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| Clean vs. Playtika Holding Corp | Clean vs. National Beverage Corp | Clean vs. Harmony Gold Mining | Clean vs. Reservoir Media |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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