Correlation Between GE Aerospace and WALMART
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By analyzing existing cross correlation between GE Aerospace and WALMART INC 755, you can compare the effects of market volatilities on GE Aerospace and WALMART 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 WALMART. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and WALMART.
Diversification Opportunities for GE Aerospace and WALMART
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GE Aerospace and WALMART is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and WALMART INC 755 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALMART INC 755 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 WALMART. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WALMART INC 755 has no effect on the direction of GE Aerospace i.e., GE Aerospace and WALMART go up and down completely randomly.
Pair Corralation between GE Aerospace and WALMART
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 2.32 times more return on investment than WALMART. However, GE Aerospace is 2.32 times more volatile than WALMART INC 755. It trades about 0.19 of its potential returns per unit of risk. WALMART INC 755 is currently generating about 0.2 per unit of risk. If you would invest 17,170 in GE Aerospace on September 2, 2024 and sell it today you would earn a total of 1,046 from holding GE Aerospace or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
GE Aerospace vs. WALMART INC 755
Performance |
| Timeline |
| GE Aerospace |
| WALMART INC 755 |
GE Aerospace and WALMART Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and WALMART
The main advantage of trading using opposite GE Aerospace and WALMART positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, WALMART 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 WALMART will offset losses from the drop in WALMART's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| WALMART vs. AEP TEX INC | WALMART vs. US BANK NATIONAL | WALMART vs. Bank of America | WALMART 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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