Correlation Between GE Aerospace and SIEGR
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By analyzing existing cross correlation between GE Aerospace and SIEGR 6125 17 AUG 26, you can compare the effects of market volatilities on GE Aerospace and SIEGR 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 SIEGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and SIEGR.
Diversification Opportunities for GE Aerospace and SIEGR
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GE Aerospace and SIEGR is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and SIEGR 6125 17 AUG 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEGR 6125 17 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 SIEGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEGR 6125 17 has no effect on the direction of GE Aerospace i.e., GE Aerospace and SIEGR go up and down completely randomly.
Pair Corralation between GE Aerospace and SIEGR
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 5.32 times more return on investment than SIEGR. However, GE Aerospace is 5.32 times more volatile than SIEGR 6125 17 AUG 26. It trades about 0.13 of its potential returns per unit of risk. SIEGR 6125 17 AUG 26 is currently generating about -0.01 per unit of risk. If you would invest 8,406 in GE Aerospace on August 31, 2024 and sell it today you would earn a total of 9,810 from holding GE Aerospace or generate 116.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 54.81% |
| Values | Daily Returns |
GE Aerospace vs. SIEGR 6125 17 AUG 26
Performance |
| Timeline |
| GE Aerospace |
| SIEGR 6125 17 |
GE Aerospace and SIEGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and SIEGR
The main advantage of trading using opposite GE Aerospace and SIEGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, SIEGR 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 SIEGR will offset losses from the drop in SIEGR'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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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