Correlation Between GE Aerospace and ORACLE
Specify exactly 2 symbols:
By analyzing existing cross correlation between GE Aerospace and ORACLE P 65, you can compare the effects of market volatilities on GE Aerospace and ORACLE 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 ORACLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and ORACLE.
Diversification Opportunities for GE Aerospace and ORACLE
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GE Aerospace and ORACLE is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and ORACLE P 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ORACLE P 65 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 ORACLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ORACLE P 65 has no effect on the direction of GE Aerospace i.e., GE Aerospace and ORACLE go up and down completely randomly.
Pair Corralation between GE Aerospace and ORACLE
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.77 times more return on investment than ORACLE. However, GE Aerospace is 1.77 times more volatile than ORACLE P 65. It trades about 0.19 of its potential returns per unit of risk. ORACLE P 65 is currently generating about -0.02 per unit of risk. If you would invest 17,176 in GE Aerospace on September 5, 2024 and sell it today you would earn a total of 1,089 from holding GE Aerospace or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GE Aerospace vs. ORACLE P 65
Performance |
| Timeline |
| GE Aerospace |
| ORACLE P 65 |
GE Aerospace and ORACLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and ORACLE
The main advantage of trading using opposite GE Aerospace and ORACLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, ORACLE 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 ORACLE will offset losses from the drop in ORACLE's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |