Correlation Between GE Aerospace and SIMON
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By analyzing existing cross correlation between GE Aerospace and SIMON PROPERTY GROUP, you can compare the effects of market volatilities on GE Aerospace and SIMON 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 SIMON. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and SIMON.
Diversification Opportunities for GE Aerospace and SIMON
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between GE Aerospace and SIMON is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and SIMON PROPERTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PROPERTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PROPERTY GROUP has no effect on the direction of GE Aerospace i.e., GE Aerospace and SIMON go up and down completely randomly.
Pair Corralation between GE Aerospace and SIMON
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.19 times more return on investment than SIMON. However, GE Aerospace is 1.19 times more volatile than SIMON PROPERTY GROUP. It trades about 0.19 of its potential returns per unit of risk. SIMON PROPERTY GROUP is currently generating about -0.19 per unit of risk. If you would invest 17,176 in GE Aerospace on September 3, 2024 and sell it today you would earn a total of 1,040 from holding GE Aerospace or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
GE Aerospace vs. SIMON PROPERTY GROUP
Performance |
| Timeline |
| GE Aerospace |
| SIMON PROPERTY GROUP |
GE Aerospace and SIMON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and SIMON
The main advantage of trading using opposite GE Aerospace and SIMON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, SIMON 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 SIMON will offset losses from the drop in SIMON'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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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