Correlation Between GE Aerospace and DISNEY
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By analyzing existing cross correlation between GE Aerospace and DISNEY WALT NEW, you can compare the effects of market volatilities on GE Aerospace and DISNEY 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 DISNEY. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and DISNEY.
Diversification Opportunities for GE Aerospace and DISNEY
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GE Aerospace and DISNEY is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and DISNEY WALT NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DISNEY WALT 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 DISNEY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DISNEY WALT NEW has no effect on the direction of GE Aerospace i.e., GE Aerospace and DISNEY go up and down completely randomly.
Pair Corralation between GE Aerospace and DISNEY
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.05 times less return on investment than DISNEY. But when comparing it to its historical volatility, GE Aerospace is 1.19 times less risky than DISNEY. It trades about 0.11 of its potential returns per unit of risk. DISNEY WALT NEW is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8,932 in DISNEY WALT NEW on August 31, 2024 and sell it today you would earn a total of 198.00 from holding DISNEY WALT NEW or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 63.64% |
| Values | Daily Returns |
GE Aerospace vs. DISNEY WALT NEW
Performance |
| Timeline |
| GE Aerospace |
| DISNEY WALT NEW |
GE Aerospace and DISNEY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and DISNEY
The main advantage of trading using opposite GE Aerospace and DISNEY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, DISNEY 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 DISNEY will offset losses from the drop in DISNEY's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
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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