Correlation Between GE Aerospace and VERIZON
Specify exactly 2 symbols:
By analyzing existing cross correlation between GE Aerospace and VERIZON MUNICATIONS INC, you can compare the effects of market volatilities on GE Aerospace and VERIZON 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 VERIZON. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and VERIZON.
Diversification Opportunities for GE Aerospace and VERIZON
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GE Aerospace and VERIZON is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and VERIZON MUNICATIONS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VERIZON MUNICATIONS 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 VERIZON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VERIZON MUNICATIONS INC has no effect on the direction of GE Aerospace i.e., GE Aerospace and VERIZON go up and down completely randomly.
Pair Corralation between GE Aerospace and VERIZON
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 0.88 times more return on investment than VERIZON. However, GE Aerospace is 1.13 times less risky than VERIZON. It trades about 0.11 of its potential returns per unit of risk. VERIZON MUNICATIONS INC is currently generating about -0.17 per unit of risk. If you would invest 17,464 in GE Aerospace on August 31, 2024 and sell it today you would earn a total of 596.00 from holding GE Aerospace or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
GE Aerospace vs. VERIZON MUNICATIONS INC
Performance |
| Timeline |
| GE Aerospace |
| VERIZON MUNICATIONS INC |
GE Aerospace and VERIZON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and VERIZON
The main advantage of trading using opposite GE Aerospace and VERIZON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, VERIZON 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 VERIZON will offset losses from the drop in VERIZON's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| VERIZON vs. AEP TEX INC | VERIZON vs. US BANK NATIONAL | VERIZON vs. Bank of America | VERIZON 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |