Correlation Between 06406GAA9 and GE Aerospace
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By analyzing existing cross correlation between BANK NEW YORK and GE Aerospace, you can compare the effects of market volatilities on 06406GAA9 and GE Aerospace 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 06406GAA9 with a short position of GE Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of 06406GAA9 and GE Aerospace.
Diversification Opportunities for 06406GAA9 and GE Aerospace
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between 06406GAA9 and GE Aerospace is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding BANK NEW YORK and GE Aerospace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Aerospace and 06406GAA9 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 BANK NEW YORK are associated (or correlated) with GE Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GE Aerospace has no effect on the direction of 06406GAA9 i.e., 06406GAA9 and GE Aerospace go up and down completely randomly.
Pair Corralation between 06406GAA9 and GE Aerospace
Assuming the 90 days trading horizon BANK NEW YORK is expected to under-perform the GE Aerospace. But the bond apears to be less risky and, when comparing its historical volatility, BANK NEW YORK is 1.07 times less risky than GE Aerospace. The bond trades about -0.19 of its potential returns per unit of risk. The GE Aerospace is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 20,557 in GE Aerospace on December 1, 2024 and sell it today you would earn a total of 141.00 from holding GE Aerospace or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK NEW YORK vs. GE Aerospace
Performance |
| Timeline |
| BANK NEW YORK |
| GE Aerospace |
06406GAA9 and GE Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 06406GAA9 and GE Aerospace
The main advantage of trading using opposite 06406GAA9 and GE Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 06406GAA9 position performs unexpectedly, GE Aerospace 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 GE Aerospace will offset losses from the drop in GE Aerospace's long position.| 06406GAA9 vs. ARIA Wireless Systems | 06406GAA9 vs. Alto Ingredients | 06406GAA9 vs. Office Properties Income | 06406GAA9 vs. Chemours Co |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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