Correlation Between GE Aerospace and Nokia
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By analyzing existing cross correlation between GE Aerospace and Nokia 6625 percent, you can compare the effects of market volatilities on GE Aerospace and Nokia 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 Nokia. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and Nokia.
Diversification Opportunities for GE Aerospace and Nokia
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between GE Aerospace and Nokia is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Nokia 6625 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokia 6625 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 Nokia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokia 6625 percent has no effect on the direction of GE Aerospace i.e., GE Aerospace and Nokia go up and down completely randomly.
Pair Corralation between GE Aerospace and Nokia
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.87 times more return on investment than Nokia. However, GE Aerospace is 1.87 times more volatile than Nokia 6625 percent. It trades about 0.16 of its potential returns per unit of risk. Nokia 6625 percent is currently generating about 0.0 per unit of risk. If you would invest 5,118 in GE Aerospace on September 3, 2024 and sell it today you would earn a total of 13,098 from holding GE Aerospace or generate 255.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
GE Aerospace vs. Nokia 6625 percent
Performance |
| Timeline |
| GE Aerospace |
| Nokia 6625 percent |
GE Aerospace and Nokia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and Nokia
The main advantage of trading using opposite GE Aerospace and Nokia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, Nokia 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 Nokia will offset losses from the drop in Nokia's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| Nokia vs. Coupang LLC | Nokia vs. Sun Life Financial | Nokia vs. Cedar Realty Trust | Nokia vs. Meiwu Technology Co |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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