Correlation Between GE Aerospace and ENTERPRISE
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By analyzing existing cross correlation between GE Aerospace and ENTERPRISE PRODS OPER, you can compare the effects of market volatilities on GE Aerospace and ENTERPRISE 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 ENTERPRISE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and ENTERPRISE.
Diversification Opportunities for GE Aerospace and ENTERPRISE
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GE Aerospace and ENTERPRISE is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and ENTERPRISE PRODS OPER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERPRISE PRODS OPER 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 ENTERPRISE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERPRISE PRODS OPER has no effect on the direction of GE Aerospace i.e., GE Aerospace and ENTERPRISE go up and down completely randomly.
Pair Corralation between GE Aerospace and ENTERPRISE
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.1 times more return on investment than ENTERPRISE. However, GE Aerospace is 1.1 times more volatile than ENTERPRISE PRODS OPER. It trades about 0.06 of its potential returns per unit of risk. ENTERPRISE PRODS OPER is currently generating about -0.02 per unit of risk. If you would invest 16,141 in GE Aerospace on September 5, 2024 and sell it today you would earn a total of 1,931 from holding GE Aerospace or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.6% |
| Values | Daily Returns |
GE Aerospace vs. ENTERPRISE PRODS OPER
Performance |
| Timeline |
| GE Aerospace |
| ENTERPRISE PRODS OPER |
GE Aerospace and ENTERPRISE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and ENTERPRISE
The main advantage of trading using opposite GE Aerospace and ENTERPRISE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, ENTERPRISE 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 ENTERPRISE will offset losses from the drop in ENTERPRISE's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| ENTERPRISE vs. Globalfoundries | ENTERPRISE vs. ON Semiconductor | ENTERPRISE vs. Apogee Enterprises | ENTERPRISE vs. Eastman Kodak Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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