Correlation Between GE Aerospace and 654106AJ2
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By analyzing existing cross correlation between GE Aerospace and NIKE INC, you can compare the effects of market volatilities on GE Aerospace and 654106AJ2 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 654106AJ2. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and 654106AJ2.
Diversification Opportunities for GE Aerospace and 654106AJ2
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between GE Aerospace and 654106AJ2 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and NIKE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 654106AJ2 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 654106AJ2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 654106AJ2 has no effect on the direction of GE Aerospace i.e., GE Aerospace and 654106AJ2 go up and down completely randomly.
Pair Corralation between GE Aerospace and 654106AJ2
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 2.33 times more return on investment than 654106AJ2. However, GE Aerospace is 2.33 times more volatile than NIKE INC. It trades about 0.19 of its potential returns per unit of risk. NIKE INC is currently generating about -0.18 per unit of risk. If you would invest 17,170 in GE Aerospace on September 2, 2024 and sell it today you would earn a total of 1,046 from holding GE Aerospace or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE Aerospace vs. NIKE INC
Performance |
| Timeline |
| GE Aerospace |
| 654106AJ2 |
GE Aerospace and 654106AJ2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and 654106AJ2
The main advantage of trading using opposite GE Aerospace and 654106AJ2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, 654106AJ2 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 654106AJ2 will offset losses from the drop in 654106AJ2's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| 654106AJ2 vs. AEP TEX INC | 654106AJ2 vs. US BANK NATIONAL | 654106AJ2 vs. Bank of America | 654106AJ2 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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