Correlation Between GE Aerospace and TREEHOUSE
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By analyzing existing cross correlation between GE Aerospace and TREEHOUSE FOODS INC, you can compare the effects of market volatilities on GE Aerospace and TREEHOUSE 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 TREEHOUSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and TREEHOUSE.
Diversification Opportunities for GE Aerospace and TREEHOUSE
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between GE Aerospace and TREEHOUSE is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and TREEHOUSE FOODS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TREEHOUSE FOODS INC 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 TREEHOUSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TREEHOUSE FOODS INC has no effect on the direction of GE Aerospace i.e., GE Aerospace and TREEHOUSE go up and down completely randomly.
Pair Corralation between GE Aerospace and TREEHOUSE
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 5.65 times more return on investment than TREEHOUSE. However, GE Aerospace is 5.65 times more volatile than TREEHOUSE FOODS INC. It trades about 0.45 of its potential returns per unit of risk. TREEHOUSE FOODS INC is currently generating about 0.21 per unit of risk. If you would invest 17,289 in GE Aerospace on November 9, 2024 and sell it today you would earn a total of 3,317 from holding GE Aerospace or generate 19.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE Aerospace vs. TREEHOUSE FOODS INC
Performance |
| Timeline |
| GE Aerospace |
| TREEHOUSE FOODS INC |
GE Aerospace and TREEHOUSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and TREEHOUSE
The main advantage of trading using opposite GE Aerospace and TREEHOUSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, TREEHOUSE 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 TREEHOUSE will offset losses from the drop in TREEHOUSE's long position.| GE Aerospace vs. Great Western Minerals | GE Aerospace vs. Enterprise Bancorp | GE Aerospace vs. T Rowe Price | GE Aerospace vs. Aviat Networks |
| TREEHOUSE vs. GE Vernova LLC | TREEHOUSE vs. Cheniere Energy Partners | TREEHOUSE vs. NetSol Technologies | TREEHOUSE vs. Cadence Design Systems |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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