Correlation Between GE Aerospace and INTEL
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By analyzing existing cross correlation between GE Aerospace and INTEL P 41, you can compare the effects of market volatilities on GE Aerospace and INTEL 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 INTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and INTEL.
Diversification Opportunities for GE Aerospace and INTEL
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between GE Aerospace and INTEL is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and INTEL P 41 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEL P 41 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 INTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEL P 41 has no effect on the direction of GE Aerospace i.e., GE Aerospace and INTEL go up and down completely randomly.
Pair Corralation between GE Aerospace and INTEL
Allowing for the 90-day total investment horizon GE Aerospace is expected to under-perform the INTEL. But the stock apears to be less risky and, when comparing its historical volatility, GE Aerospace is 2.64 times less risky than INTEL. The stock trades about -0.23 of its potential returns per unit of risk. The INTEL P 41 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7,531 in INTEL P 41 on September 12, 2024 and sell it today you would lose (41.00) from holding INTEL P 41 or give up 0.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GE Aerospace vs. INTEL P 41
Performance |
| Timeline |
| GE Aerospace |
| INTEL P 41 |
GE Aerospace and INTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and INTEL
The main advantage of trading using opposite GE Aerospace and INTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, INTEL 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 INTEL will offset losses from the drop in INTEL's long position.| GE Aerospace vs. Victory Integrity Smallmid Cap | GE Aerospace vs. Hilton Worldwide Holdings | GE Aerospace vs. NVIDIA | GE Aerospace vs. JPMorgan Chase Co |
| INTEL vs. Scholastic | INTEL vs. Universal Technical Institute | INTEL vs. Skillful Craftsman Education | INTEL vs. Radcom |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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