Correlation Between GE Aerospace and PIONEER
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By analyzing existing cross correlation between GE Aerospace and PIONEER NATURAL RESOURCES, you can compare the effects of market volatilities on GE Aerospace and PIONEER 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 PIONEER. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and PIONEER.
Diversification Opportunities for GE Aerospace and PIONEER
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GE Aerospace and PIONEER is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and PIONEER NATURAL RESOURCES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIONEER NATURAL RESOURCES 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 PIONEER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIONEER NATURAL RESOURCES has no effect on the direction of GE Aerospace i.e., GE Aerospace and PIONEER go up and down completely randomly.
Pair Corralation between GE Aerospace and PIONEER
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 3.41 times more return on investment than PIONEER. However, GE Aerospace is 3.41 times more volatile than PIONEER NATURAL RESOURCES. It trades about 0.16 of its potential returns per unit of risk. PIONEER NATURAL RESOURCES is currently generating about 0.02 per unit of risk. If you would invest 5,138 in GE Aerospace on September 2, 2024 and sell it today you would earn a total of 13,078 from holding GE Aerospace or generate 254.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
GE Aerospace vs. PIONEER NATURAL RESOURCES
Performance |
| Timeline |
| GE Aerospace |
| PIONEER NATURAL RESOURCES |
GE Aerospace and PIONEER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and PIONEER
The main advantage of trading using opposite GE Aerospace and PIONEER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, PIONEER 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 PIONEER will offset losses from the drop in PIONEER's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| PIONEER vs. AEP TEX INC | PIONEER vs. US BANK NATIONAL | PIONEER vs. Bank of America | PIONEER vs. GE Aerospace |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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