Correlation Between GE Aerospace and 210518DN3
Specify exactly 2 symbols:
By analyzing existing cross correlation between GE Aerospace and CMS 265 15 AUG 52, you can compare the effects of market volatilities on GE Aerospace and 210518DN3 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 210518DN3. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and 210518DN3.
Diversification Opportunities for GE Aerospace and 210518DN3
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GE Aerospace and 210518DN3 is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and CMS 265 15 AUG 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMS 265 15 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 210518DN3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMS 265 15 has no effect on the direction of GE Aerospace i.e., GE Aerospace and 210518DN3 go up and down completely randomly.
Pair Corralation between GE Aerospace and 210518DN3
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.19 times more return on investment than 210518DN3. However, GE Aerospace is 1.19 times more volatile than CMS 265 15 AUG 52. It trades about 0.16 of its potential returns per unit of risk. CMS 265 15 AUG 52 is currently generating about 0.0 per unit of risk. If you would invest 17,536 in GE Aerospace on August 29, 2024 and sell it today you would earn a total of 924.00 from holding GE Aerospace or generate 5.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 68.18% |
| Values | Daily Returns |
GE Aerospace vs. CMS 265 15 AUG 52
Performance |
| Timeline |
| GE Aerospace |
| CMS 265 15 |
GE Aerospace and 210518DN3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and 210518DN3
The main advantage of trading using opposite GE Aerospace and 210518DN3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, 210518DN3 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 210518DN3 will offset losses from the drop in 210518DN3's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| 210518DN3 vs. Merit Medical Systems | 210518DN3 vs. Alvotech | 210518DN3 vs. Sonida Senior Living | 210518DN3 vs. PennantPark Floating Rate |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |