Correlation Between GE Aerospace and FORTIVE
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By analyzing existing cross correlation between GE Aerospace and FORTIVE P 315, you can compare the effects of market volatilities on GE Aerospace and FORTIVE 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 FORTIVE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and FORTIVE.
Diversification Opportunities for GE Aerospace and FORTIVE
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GE Aerospace and FORTIVE is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and FORTIVE P 315 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORTIVE P 315 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 FORTIVE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORTIVE P 315 has no effect on the direction of GE Aerospace i.e., GE Aerospace and FORTIVE go up and down completely randomly.
Pair Corralation between GE Aerospace and FORTIVE
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 18.77 times more return on investment than FORTIVE. However, GE Aerospace is 18.77 times more volatile than FORTIVE P 315. It trades about 0.45 of its potential returns per unit of risk. FORTIVE P 315 is currently generating about 0.05 per unit of risk. If you would invest 17,289 in GE Aerospace on November 9, 2024 and sell it today you would earn a total of 3,317 from holding GE Aerospace or generate 19.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
GE Aerospace vs. FORTIVE P 315
Performance |
| Timeline |
| GE Aerospace |
| FORTIVE P 315 |
GE Aerospace and FORTIVE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and FORTIVE
The main advantage of trading using opposite GE Aerospace and FORTIVE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, FORTIVE 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 FORTIVE will offset losses from the drop in FORTIVE's long position.| GE Aerospace vs. Great Western Minerals | GE Aerospace vs. Enterprise Bancorp | GE Aerospace vs. T Rowe Price | GE Aerospace vs. Aviat Networks |
| FORTIVE vs. Orbit Garant Drilling | FORTIVE vs. Old Republic International | FORTIVE vs. Direct Line Insurance | FORTIVE vs. Pekin Life Insurance |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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