Correlation Between GE Aerospace and WESCO
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By analyzing existing cross correlation between GE Aerospace and WESCO Distribution 725, you can compare the effects of market volatilities on GE Aerospace and WESCO 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 WESCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and WESCO.
Diversification Opportunities for GE Aerospace and WESCO
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between GE Aerospace and WESCO is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and WESCO Distribution 725 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESCO Distribution 725 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 WESCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESCO Distribution 725 has no effect on the direction of GE Aerospace i.e., GE Aerospace and WESCO go up and down completely randomly.
Pair Corralation between GE Aerospace and WESCO
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 4.72 times more return on investment than WESCO. However, GE Aerospace is 4.72 times more volatile than WESCO Distribution 725. It trades about 0.16 of its potential returns per unit of risk. WESCO Distribution 725 is currently generating about 0.0 per unit of risk. If you would invest 5,138 in GE Aerospace on September 2, 2024 and sell it today you would earn a total of 13,078 from holding GE Aerospace or generate 254.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
GE Aerospace vs. WESCO Distribution 725
Performance |
| Timeline |
| GE Aerospace |
| WESCO Distribution 725 |
GE Aerospace and WESCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and WESCO
The main advantage of trading using opposite GE Aerospace and WESCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, WESCO 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 WESCO will offset losses from the drop in WESCO's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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