Correlation Between GE Aerospace and UNITED
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By analyzing existing cross correlation between GE Aerospace and UNITED PARCEL SVC, you can compare the effects of market volatilities on GE Aerospace and UNITED 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 UNITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and UNITED.
Diversification Opportunities for GE Aerospace and UNITED
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GE Aerospace and UNITED is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and UNITED PARCEL SVC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED PARCEL SVC 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 UNITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED PARCEL SVC has no effect on the direction of GE Aerospace i.e., GE Aerospace and UNITED go up and down completely randomly.
Pair Corralation between GE Aerospace and UNITED
Allowing for the 90-day total investment horizon GE Aerospace is expected to under-perform the UNITED. In addition to that, GE Aerospace is 3.23 times more volatile than UNITED PARCEL SVC. It trades about -0.2 of its total potential returns per unit of risk. UNITED PARCEL SVC is currently generating about -0.12 per unit of volatility. If you would invest 9,578 in UNITED PARCEL SVC on September 12, 2024 and sell it today you would lose (125.00) from holding UNITED PARCEL SVC or give up 1.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
GE Aerospace vs. UNITED PARCEL SVC
Performance |
| Timeline |
| GE Aerospace |
| UNITED PARCEL SVC |
GE Aerospace and UNITED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and UNITED
The main advantage of trading using opposite GE Aerospace and UNITED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, UNITED 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 UNITED will offset losses from the drop in UNITED's long position.| GE Aerospace vs. Victory Integrity Smallmid Cap | GE Aerospace vs. Hilton Worldwide Holdings | GE Aerospace vs. NVIDIA | GE Aerospace vs. JPMorgan Chase Co |
| UNITED vs. AEP TEX INC | UNITED vs. US BANK NATIONAL | UNITED vs. Applied Blockchain | UNITED vs. BigBearai Holdings |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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