Correlation Between GE Aerospace and SYSCO
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By analyzing existing cross correlation between GE Aerospace and SYSCO P 445, you can compare the effects of market volatilities on GE Aerospace and SYSCO 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 SYSCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and SYSCO.
Diversification Opportunities for GE Aerospace and SYSCO
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GE Aerospace and SYSCO is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and SYSCO P 445 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSCO P 445 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 SYSCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSCO P 445 has no effect on the direction of GE Aerospace i.e., GE Aerospace and SYSCO go up and down completely randomly.
Pair Corralation between GE Aerospace and SYSCO
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.82 times more return on investment than SYSCO. However, GE Aerospace is 1.82 times more volatile than SYSCO P 445. It trades about 0.06 of its potential returns per unit of risk. SYSCO P 445 is currently generating about 0.08 per unit of risk. If you would invest 15,575 in GE Aerospace on September 3, 2024 and sell it today you would earn a total of 2,641 from holding GE Aerospace or generate 16.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 63.86% |
| Values | Daily Returns |
GE Aerospace vs. SYSCO P 445
Performance |
| Timeline |
| GE Aerospace |
| SYSCO P 445 |
GE Aerospace and SYSCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and SYSCO
The main advantage of trading using opposite GE Aerospace and SYSCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, SYSCO 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 SYSCO will offset losses from the drop in SYSCO'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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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