Correlation Between GE Aerospace and 893574AK9
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By analyzing existing cross correlation between GE Aerospace and TRANSCONTINENTAL GAS PIPE, you can compare the effects of market volatilities on GE Aerospace and 893574AK9 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 893574AK9. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and 893574AK9.
Diversification Opportunities for GE Aerospace and 893574AK9
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between GE Aerospace and 893574AK9 is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and TRANSCONTINENTAL GAS PIPE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRANSCONTINENTAL GAS PIPE 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 893574AK9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRANSCONTINENTAL GAS PIPE has no effect on the direction of GE Aerospace i.e., GE Aerospace and 893574AK9 go up and down completely randomly.
Pair Corralation between GE Aerospace and 893574AK9
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 3.05 times more return on investment than 893574AK9. However, GE Aerospace is 3.05 times more volatile than TRANSCONTINENTAL GAS PIPE. It trades about 0.04 of its potential returns per unit of risk. TRANSCONTINENTAL GAS PIPE is currently generating about -0.24 per unit of risk. If you would invest 17,910 in GE Aerospace on August 26, 2024 and sell it today you would earn a total of 205.00 from holding GE Aerospace or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
GE Aerospace vs. TRANSCONTINENTAL GAS PIPE
Performance |
| Timeline |
| GE Aerospace |
| TRANSCONTINENTAL GAS PIPE |
GE Aerospace and 893574AK9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and 893574AK9
The main advantage of trading using opposite GE Aerospace and 893574AK9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, 893574AK9 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 893574AK9 will offset losses from the drop in 893574AK9's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| 893574AK9 vs. PennantPark Floating Rate | 893574AK9 vs. Amkor Technology | 893574AK9 vs. BioNTech SE | 893574AK9 vs. US Global Investors |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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