Correlation Between GE Aerospace and Occidental
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By analyzing existing cross correlation between GE Aerospace and Occidental Petroleum 8875, 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
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GE Aerospace and Occidental is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Occidental Petroleum 8875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum 8875 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 Petroleum 8875 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 2.63 times more return on investment than Occidental. However, GE Aerospace is 2.63 times more volatile than Occidental Petroleum 8875. It trades about 0.19 of its potential returns per unit of risk. Occidental Petroleum 8875 is currently generating about 0.22 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE Aerospace vs. Occidental Petroleum 8875
Performance |
| Timeline |
| GE Aerospace |
| Occidental Petroleum 8875 |
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. SunLink Health Systems | Occidental vs. Cumberland Pharmaceuticals | Occidental vs. HUTCHMED DRC | Occidental vs. Sonida Senior Living |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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