Correlation Between GE Aerospace and 88023UAJ0
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By analyzing existing cross correlation between GE Aerospace and US88023UAJ07, you can compare the effects of market volatilities on GE Aerospace and 88023UAJ0 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 88023UAJ0. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and 88023UAJ0.
Diversification Opportunities for GE Aerospace and 88023UAJ0
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between GE Aerospace and 88023UAJ0 is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and US88023UAJ07 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US88023UAJ07 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 88023UAJ0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US88023UAJ07 has no effect on the direction of GE Aerospace i.e., GE Aerospace and 88023UAJ0 go up and down completely randomly.
Pair Corralation between GE Aerospace and 88023UAJ0
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 1.86 times more return on investment than 88023UAJ0. However, GE Aerospace is 1.86 times more volatile than US88023UAJ07. It trades about 0.06 of its potential returns per unit of risk. US88023UAJ07 is currently generating about 0.01 per unit of risk. If you would invest 16,095 in GE Aerospace on September 1, 2024 and sell it today you would earn a total of 2,121 from holding GE Aerospace or generate 13.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
GE Aerospace vs. US88023UAJ07
Performance |
| Timeline |
| GE Aerospace |
| US88023UAJ07 |
GE Aerospace and 88023UAJ0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and 88023UAJ0
The main advantage of trading using opposite GE Aerospace and 88023UAJ0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, 88023UAJ0 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 88023UAJ0 will offset losses from the drop in 88023UAJ0's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| 88023UAJ0 vs. AEP TEX INC | 88023UAJ0 vs. US BANK NATIONAL | 88023UAJ0 vs. Bank of America | 88023UAJ0 vs. GE Aerospace |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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