Correlation Between GE Aerospace and 88579YBG5
Specify exactly 2 symbols:
By analyzing existing cross correlation between GE Aerospace and 3M MTN, you can compare the effects of market volatilities on GE Aerospace and 88579YBG5 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 88579YBG5. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and 88579YBG5.
Diversification Opportunities for GE Aerospace and 88579YBG5
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between GE Aerospace and 88579YBG5 is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and 3M MTN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 88579YBG5 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 88579YBG5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 88579YBG5 has no effect on the direction of GE Aerospace i.e., GE Aerospace and 88579YBG5 go up and down completely randomly.
Pair Corralation between GE Aerospace and 88579YBG5
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 3.34 times more return on investment than 88579YBG5. However, GE Aerospace is 3.34 times more volatile than 3M MTN. It trades about 0.06 of its potential returns per unit of risk. 3M MTN is currently generating about -0.02 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 | 94.44% |
| Values | Daily Returns |
GE Aerospace vs. 3M MTN
Performance |
| Timeline |
| GE Aerospace |
| 88579YBG5 |
GE Aerospace and 88579YBG5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and 88579YBG5
The main advantage of trading using opposite GE Aerospace and 88579YBG5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, 88579YBG5 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 88579YBG5 will offset losses from the drop in 88579YBG5's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| 88579YBG5 vs. AEP TEX INC | 88579YBG5 vs. US BANK NATIONAL | 88579YBG5 vs. Bank of America | 88579YBG5 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Transaction History View history of all your transactions and understand their impact on performance |