Correlation Between GE Aerospace and International
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By analyzing existing cross correlation between GE Aerospace and International Game Technology, you can compare the effects of market volatilities on GE Aerospace and International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and International.
Diversification Opportunities for GE Aerospace and International
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GE Aerospace and International is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of GE Aerospace i.e., GE Aerospace and International go up and down completely randomly.
Pair Corralation between GE Aerospace and International
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 3.23 times more return on investment than International. However, GE Aerospace is 3.23 times more volatile than International Game Technology. It trades about 0.19 of its potential returns per unit of risk. International Game Technology is currently generating about -0.1 per unit of risk. If you would invest 17,170 in GE Aerospace on September 2, 2024 and sell it today you would earn a total of 1,046 from holding GE Aerospace or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
GE Aerospace vs. International Game Technology
Performance |
| Timeline |
| GE Aerospace |
| International Game |
GE Aerospace and International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and International
The main advantage of trading using opposite GE Aerospace and International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, International 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 International will offset losses from the drop in International's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| International vs. AEP TEX INC | International vs. US BANK NATIONAL | International vs. Bank of America | International 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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