Correlation Between GE Aerospace and 502413BE6
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By analyzing existing cross correlation between GE Aerospace and L3 TECHNOLOGIES INC, you can compare the effects of market volatilities on GE Aerospace and 502413BE6 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 502413BE6. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and 502413BE6.
Diversification Opportunities for GE Aerospace and 502413BE6
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between GE Aerospace and 502413BE6 is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and L3 TECHNOLOGIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L3 TECHNOLOGIES INC 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 502413BE6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L3 TECHNOLOGIES INC has no effect on the direction of GE Aerospace i.e., GE Aerospace and 502413BE6 go up and down completely randomly.
Pair Corralation between GE Aerospace and 502413BE6
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 0.99 times more return on investment than 502413BE6. However, GE Aerospace is 1.01 times less risky than 502413BE6. It trades about 0.15 of its potential returns per unit of risk. L3 TECHNOLOGIES INC is currently generating about 0.06 per unit of risk. If you would invest 9,571 in GE Aerospace on September 3, 2024 and sell it today you would earn a total of 8,473 from holding GE Aerospace or generate 88.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 23.08% |
| Values | Daily Returns |
GE Aerospace vs. L3 TECHNOLOGIES INC
Performance |
| Timeline |
| GE Aerospace |
| L3 TECHNOLOGIES INC |
GE Aerospace and 502413BE6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and 502413BE6
The main advantage of trading using opposite GE Aerospace and 502413BE6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, 502413BE6 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 502413BE6 will offset losses from the drop in 502413BE6's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| 502413BE6 vs. Saia Inc | 502413BE6 vs. Yuexiu Transport Infrastructure | 502413BE6 vs. WiMi Hologram Cloud | 502413BE6 vs. Old Dominion Freight |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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