Correlation Between GE Aerospace and 46284VAG6
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By analyzing existing cross correlation between GE Aerospace and Iron Mountain 5, you can compare the effects of market volatilities on GE Aerospace and 46284VAG6 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 46284VAG6. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and 46284VAG6.
Diversification Opportunities for GE Aerospace and 46284VAG6
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GE Aerospace and 46284VAG6 is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Iron Mountain 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iron Mountain 5 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 46284VAG6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iron Mountain 5 has no effect on the direction of GE Aerospace i.e., GE Aerospace and 46284VAG6 go up and down completely randomly.
Pair Corralation between GE Aerospace and 46284VAG6
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.82 times more return on investment than 46284VAG6. However, GE Aerospace is 1.82 times more volatile than Iron Mountain 5. It trades about 0.06 of its potential returns per unit of risk. Iron Mountain 5 is currently generating about -0.02 per unit of risk. If you would invest 16,087 in GE Aerospace on September 2, 2024 and sell it today you would earn a total of 2,129 from holding GE Aerospace or generate 13.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.51% |
| Values | Daily Returns |
GE Aerospace vs. Iron Mountain 5
Performance |
| Timeline |
| GE Aerospace |
| Iron Mountain 5 |
GE Aerospace and 46284VAG6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and 46284VAG6
The main advantage of trading using opposite GE Aerospace and 46284VAG6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, 46284VAG6 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 46284VAG6 will offset losses from the drop in 46284VAG6's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| 46284VAG6 vs. AEP TEX INC | 46284VAG6 vs. US BANK NATIONAL | 46284VAG6 vs. Bank of America | 46284VAG6 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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