Correlation Between GE Aerospace and Sothebys
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By analyzing existing cross correlation between GE Aerospace and Sothebys 7375 percent, you can compare the effects of market volatilities on GE Aerospace and Sothebys 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 Sothebys. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and Sothebys.
Diversification Opportunities for GE Aerospace and Sothebys
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between GE Aerospace and Sothebys is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Sothebys 7375 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sothebys 7375 percent 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 Sothebys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sothebys 7375 percent has no effect on the direction of GE Aerospace i.e., GE Aerospace and Sothebys go up and down completely randomly.
Pair Corralation between GE Aerospace and Sothebys
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 0.49 times more return on investment than Sothebys. However, GE Aerospace is 2.06 times less risky than Sothebys. It trades about 0.19 of its potential returns per unit of risk. Sothebys 7375 percent is currently generating about -0.25 per unit of risk. If you would invest 17,170 in GE Aerospace on September 2, 2024 and sell it today you would earn a total of 1,046 from holding GE Aerospace or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
GE Aerospace vs. Sothebys 7375 percent
Performance |
| Timeline |
| GE Aerospace |
| Sothebys 7375 percent |
GE Aerospace and Sothebys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and Sothebys
The main advantage of trading using opposite GE Aerospace and Sothebys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, Sothebys 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 Sothebys will offset losses from the drop in Sothebys' long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| Sothebys vs. BioNTech SE | Sothebys vs. Inhibrx | Sothebys vs. Tscan Therapeutics | Sothebys vs. Asure Software |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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