Correlation Between GE Aerospace and SOUTHERN
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By analyzing existing cross correlation between GE Aerospace and SOUTHERN CALIFORNIA EDISON, you can compare the effects of market volatilities on GE Aerospace and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and SOUTHERN.
Diversification Opportunities for GE Aerospace and SOUTHERN
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GE Aerospace and SOUTHERN is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and SOUTHERN CALIFORNIA EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIFORNIA 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIFORNIA has no effect on the direction of GE Aerospace i.e., GE Aerospace and SOUTHERN go up and down completely randomly.
Pair Corralation between GE Aerospace and SOUTHERN
Allowing for the 90-day total investment horizon GE Aerospace is expected to under-perform the SOUTHERN. But the stock apears to be less risky and, when comparing its historical volatility, GE Aerospace is 1.03 times less risky than SOUTHERN. The stock trades about -0.2 of its potential returns per unit of risk. The SOUTHERN CALIFORNIA EDISON is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 6,489 in SOUTHERN CALIFORNIA EDISON on September 12, 2024 and sell it today you would lose (217.00) from holding SOUTHERN CALIFORNIA EDISON or give up 3.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 76.19% |
| Values | Daily Returns |
GE Aerospace vs. SOUTHERN CALIFORNIA EDISON
Performance |
| Timeline |
| GE Aerospace |
| SOUTHERN CALIFORNIA |
GE Aerospace and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and SOUTHERN
The main advantage of trading using opposite GE Aerospace and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| GE Aerospace vs. Victory Integrity Smallmid Cap | GE Aerospace vs. Hilton Worldwide Holdings | GE Aerospace vs. NVIDIA | GE Aerospace vs. JPMorgan Chase Co |
| SOUTHERN vs. Cedar Realty Trust | SOUTHERN vs. Sphere Entertainment Co | SOUTHERN vs. Arhaus Inc | SOUTHERN vs. Zhihu Inc ADR |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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