Correlation Between GE Aerospace and 404139AJ6
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By analyzing existing cross correlation between GE Aerospace and US404139AJ64, you can compare the effects of market volatilities on GE Aerospace and 404139AJ6 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 404139AJ6. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and 404139AJ6.
Diversification Opportunities for GE Aerospace and 404139AJ6
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between GE Aerospace and 404139AJ6 is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and US404139AJ64 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US404139AJ64 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 404139AJ6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US404139AJ64 has no effect on the direction of GE Aerospace i.e., GE Aerospace and 404139AJ6 go up and down completely randomly.
Pair Corralation between GE Aerospace and 404139AJ6
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 0.36 times more return on investment than 404139AJ6. However, GE Aerospace is 2.81 times less risky than 404139AJ6. It trades about 0.19 of its potential returns per unit of risk. US404139AJ64 is currently generating about -0.48 per unit of risk. If you would invest 17,176 in GE Aerospace on September 5, 2024 and sell it today you would earn a total of 1,089 from holding GE Aerospace or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 18.18% |
| Values | Daily Returns |
GE Aerospace vs. US404139AJ64
Performance |
| Timeline |
| GE Aerospace |
| US404139AJ64 |
GE Aerospace and 404139AJ6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and 404139AJ6
The main advantage of trading using opposite GE Aerospace and 404139AJ6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, 404139AJ6 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 404139AJ6 will offset losses from the drop in 404139AJ6's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| 404139AJ6 vs. The Travelers Companies | 404139AJ6 vs. GE Aerospace | 404139AJ6 vs. Walmart | 404139AJ6 vs. Pfizer Inc |
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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