Correlation Between GE Aerospace and 707569AS8
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By analyzing existing cross correlation between GE Aerospace and Penn National Gaming, you can compare the effects of market volatilities on GE Aerospace and 707569AS8 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 707569AS8. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and 707569AS8.
Diversification Opportunities for GE Aerospace and 707569AS8
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between GE Aerospace and 707569AS8 is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Penn National Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penn National Gaming 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 707569AS8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penn National Gaming has no effect on the direction of GE Aerospace i.e., GE Aerospace and 707569AS8 go up and down completely randomly.
Pair Corralation between GE Aerospace and 707569AS8
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 3.32 times more return on investment than 707569AS8. However, GE Aerospace is 3.32 times more volatile than Penn National Gaming. It trades about 0.15 of its potential returns per unit of risk. Penn National Gaming is currently generating about -0.01 per unit of risk. If you would invest 9,546 in GE Aerospace on September 4, 2024 and sell it today you would earn a total of 8,526 from holding GE Aerospace or generate 89.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 80.57% |
| Values | Daily Returns |
GE Aerospace vs. Penn National Gaming
Performance |
| Timeline |
| GE Aerospace |
| Penn National Gaming |
GE Aerospace and 707569AS8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and 707569AS8
The main advantage of trading using opposite GE Aerospace and 707569AS8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, 707569AS8 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 707569AS8 will offset losses from the drop in 707569AS8's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| 707569AS8 vs. The Travelers Companies | 707569AS8 vs. GE Aerospace | 707569AS8 vs. Walmart | 707569AS8 vs. Pfizer Inc |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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