Correlation Between GE Aerospace and 552953CD1
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By analyzing existing cross correlation between GE Aerospace and MGM Resorts International, you can compare the effects of market volatilities on GE Aerospace and 552953CD1 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 552953CD1. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and 552953CD1.
Diversification Opportunities for GE Aerospace and 552953CD1
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between GE Aerospace and 552953CD1 is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and MGM Resorts International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGM Resorts International 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 552953CD1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGM Resorts International has no effect on the direction of GE Aerospace i.e., GE Aerospace and 552953CD1 go up and down completely randomly.
Pair Corralation between GE Aerospace and 552953CD1
Allowing for the 90-day total investment horizon GE Aerospace is expected to under-perform the 552953CD1. In addition to that, GE Aerospace is 2.28 times more volatile than MGM Resorts International. It trades about -0.21 of its total potential returns per unit of risk. MGM Resorts International is currently generating about -0.2 per unit of volatility. If you would invest 9,925 in MGM Resorts International on September 13, 2024 and sell it today you would lose (300.00) from holding MGM Resorts International or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
GE Aerospace vs. MGM Resorts International
Performance |
| Timeline |
| GE Aerospace |
| MGM Resorts International |
GE Aerospace and 552953CD1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and 552953CD1
The main advantage of trading using opposite GE Aerospace and 552953CD1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, 552953CD1 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 552953CD1 will offset losses from the drop in 552953CD1's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| 552953CD1 vs. Kandi Technologies Group | 552953CD1 vs. Reservoir Media | 552953CD1 vs. Shake Shack | 552953CD1 vs. Meli Hotels International |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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