Correlation Between GE Aerospace and Griffon
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By analyzing existing cross correlation between GE Aerospace and Griffon 575, you can compare the effects of market volatilities on GE Aerospace and Griffon 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 Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and Griffon.
Diversification Opportunities for GE Aerospace and Griffon
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GE Aerospace and Griffon is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Griffon 575 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon 575 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 Griffon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffon 575 has no effect on the direction of GE Aerospace i.e., GE Aerospace and Griffon go up and down completely randomly.
Pair Corralation between GE Aerospace and Griffon
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.95 times more return on investment than Griffon. However, GE Aerospace is 1.95 times more volatile than Griffon 575. It trades about 0.19 of its potential returns per unit of risk. Griffon 575 is currently generating about -0.05 per unit of risk. If you would invest 17,178 in GE Aerospace on September 1, 2024 and sell it today you would earn a total of 1,038 from holding GE Aerospace or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
GE Aerospace vs. Griffon 575
Performance |
| Timeline |
| GE Aerospace |
| Griffon 575 |
GE Aerospace and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and Griffon
The main advantage of trading using opposite GE Aerospace and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, Griffon 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 Griffon will offset losses from the drop in Griffon's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| Griffon vs. AEP TEX INC | Griffon vs. US BANK NATIONAL | Griffon vs. Bank of America | Griffon vs. GE Aerospace |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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