Correlation Between GE Aerospace and KROGER
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By analyzing existing cross correlation between GE Aerospace and KROGER 37 percent, you can compare the effects of market volatilities on GE Aerospace and KROGER 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 KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and KROGER.
Diversification Opportunities for GE Aerospace and KROGER
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GE Aerospace and KROGER is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and KROGER 37 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 37 percent 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 KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER 37 percent has no effect on the direction of GE Aerospace i.e., GE Aerospace and KROGER go up and down completely randomly.
Pair Corralation between GE Aerospace and KROGER
Allowing for the 90-day total investment horizon GE Aerospace is expected to under-perform the KROGER. In addition to that, GE Aerospace is 1.4 times more volatile than KROGER 37 percent. It trades about -0.2 of its total potential returns per unit of risk. KROGER 37 percent is currently generating about -0.02 per unit of volatility. If you would invest 9,717 in KROGER 37 percent on September 12, 2024 and sell it today you would lose (74.00) from holding KROGER 37 percent or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE Aerospace vs. KROGER 37 percent
Performance |
| Timeline |
| GE Aerospace |
| KROGER 37 percent |
GE Aerospace and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and KROGER
The main advantage of trading using opposite GE Aerospace and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, KROGER 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 KROGER will offset losses from the drop in KROGER'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 |
| KROGER vs. Hooker Furniture | KROGER vs. Franklin Street Properties | KROGER vs. Luxfer Holdings PLC | KROGER vs. Boston Properties |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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