Correlation Between GE Aerospace and ONEOK
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By analyzing existing cross correlation between GE Aerospace and ONEOK PARTNERS L, you can compare the effects of market volatilities on GE Aerospace and ONEOK 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 ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and ONEOK.
Diversification Opportunities for GE Aerospace and ONEOK
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GE Aerospace and ONEOK is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and ONEOK PARTNERS L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK PARTNERS L 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 ONEOK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONEOK PARTNERS L has no effect on the direction of GE Aerospace i.e., GE Aerospace and ONEOK go up and down completely randomly.
Pair Corralation between GE Aerospace and ONEOK
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.28 times more return on investment than ONEOK. However, GE Aerospace is 1.28 times more volatile than ONEOK PARTNERS L. It trades about 0.16 of its potential returns per unit of risk. ONEOK PARTNERS L is currently generating about -0.12 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 Together |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
GE Aerospace vs. ONEOK PARTNERS L
Performance |
| Timeline |
| GE Aerospace |
| ONEOK PARTNERS L |
GE Aerospace and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and ONEOK
The main advantage of trading using opposite GE Aerospace and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, ONEOK 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 ONEOK will offset losses from the drop in ONEOK's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| ONEOK vs. Summit Materials | ONEOK vs. NioCorp Developments Ltd | ONEOK vs. NL Industries | ONEOK vs. Eastman Chemical |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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