Correlation Between GE Aerospace and OCCIDENTAL
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By analyzing existing cross correlation between GE Aerospace and OCCIDENTAL PETE P, you can compare the effects of market volatilities on GE Aerospace and OCCIDENTAL 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 OCCIDENTAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and OCCIDENTAL.
Diversification Opportunities for GE Aerospace and OCCIDENTAL
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GE Aerospace and OCCIDENTAL is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and OCCIDENTAL PETE P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCCIDENTAL PETE P 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 OCCIDENTAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCCIDENTAL PETE P has no effect on the direction of GE Aerospace i.e., GE Aerospace and OCCIDENTAL go up and down completely randomly.
Pair Corralation between GE Aerospace and OCCIDENTAL
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 0.45 times more return on investment than OCCIDENTAL. However, GE Aerospace is 2.2 times less risky than OCCIDENTAL. It trades about 0.16 of its potential returns per unit of risk. OCCIDENTAL PETE P is currently generating about 0.04 per unit of risk. If you would invest 17,176 in GE Aerospace on September 4, 2024 and sell it today you would earn a total of 868.00 from holding GE Aerospace or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
GE Aerospace vs. OCCIDENTAL PETE P
Performance |
| Timeline |
| GE Aerospace |
| OCCIDENTAL PETE P |
GE Aerospace and OCCIDENTAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and OCCIDENTAL
The main advantage of trading using opposite GE Aerospace and OCCIDENTAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, OCCIDENTAL 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 OCCIDENTAL will offset losses from the drop in OCCIDENTAL's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| OCCIDENTAL vs. Timken Company | OCCIDENTAL vs. Barrick Gold Corp | OCCIDENTAL vs. Weyco Group | OCCIDENTAL vs. Inflection Point Acquisition |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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