Correlation Between GE Aerospace and COMCAST
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By analyzing existing cross correlation between GE Aerospace and COMCAST P NEW, you can compare the effects of market volatilities on GE Aerospace and COMCAST 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 COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and COMCAST.
Diversification Opportunities for GE Aerospace and COMCAST
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GE Aerospace and COMCAST is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and COMCAST P NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMCAST P NEW 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 COMCAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMCAST P NEW has no effect on the direction of GE Aerospace i.e., GE Aerospace and COMCAST go up and down completely randomly.
Pair Corralation between GE Aerospace and COMCAST
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.5 times less return on investment than COMCAST. But when comparing it to its historical volatility, GE Aerospace is 1.02 times less risky than COMCAST. It trades about 0.06 of its potential returns per unit of risk. COMCAST P NEW is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 8,730 in COMCAST P NEW on September 5, 2024 and sell it today you would earn a total of 768.00 from holding COMCAST P NEW or generate 8.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 46.4% |
| Values | Daily Returns |
GE Aerospace vs. COMCAST P NEW
Performance |
| Timeline |
| GE Aerospace |
| COMCAST P NEW |
GE Aerospace and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and COMCAST
The main advantage of trading using opposite GE Aerospace and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, COMCAST 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 COMCAST will offset losses from the drop in COMCAST's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| COMCAST vs. The Travelers Companies | COMCAST vs. GE Aerospace | COMCAST vs. Walmart | COMCAST vs. Pfizer 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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