Correlation Between GE Aerospace and 644239AY1
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By analyzing existing cross correlation between GE Aerospace and NEW ENGLAND TEL, you can compare the effects of market volatilities on GE Aerospace and 644239AY1 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 644239AY1. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and 644239AY1.
Diversification Opportunities for GE Aerospace and 644239AY1
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between GE Aerospace and 644239AY1 is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and NEW ENGLAND TEL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEW ENGLAND TEL 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 644239AY1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEW ENGLAND TEL has no effect on the direction of GE Aerospace i.e., GE Aerospace and 644239AY1 go up and down completely randomly.
Pair Corralation between GE Aerospace and 644239AY1
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.36 times less return on investment than 644239AY1. In addition to that, GE Aerospace is 1.18 times more volatile than NEW ENGLAND TEL. It trades about 0.12 of its total potential returns per unit of risk. NEW ENGLAND TEL is currently generating about 0.2 per unit of volatility. If you would invest 11,141 in NEW ENGLAND TEL on November 29, 2024 and sell it today you would earn a total of 273.00 from holding NEW ENGLAND TEL or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
GE Aerospace vs. NEW ENGLAND TEL
Performance |
| Timeline |
| GE Aerospace |
| NEW ENGLAND TEL |
GE Aerospace and 644239AY1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and 644239AY1
The main advantage of trading using opposite GE Aerospace and 644239AY1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, 644239AY1 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 644239AY1 will offset losses from the drop in 644239AY1's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| 644239AY1 vs. Globalfoundries | 644239AY1 vs. STMicroelectronics NV ADR | 644239AY1 vs. Daqo New Energy | 644239AY1 vs. Vishay Intertechnology |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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