Correlation Between 1248EPCB7 and GE Aerospace
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By analyzing existing cross correlation between CCO Holdings 5375 and GE Aerospace, you can compare the effects of market volatilities on 1248EPCB7 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 1248EPCB7 with a short position of GE Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1248EPCB7 and GE Aerospace.
Diversification Opportunities for 1248EPCB7 and GE Aerospace
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between 1248EPCB7 and GE Aerospace is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding CCO Holdings 5375 and GE Aerospace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Aerospace and 1248EPCB7 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 CCO Holdings 5375 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 1248EPCB7 i.e., 1248EPCB7 and GE Aerospace go up and down completely randomly.
Pair Corralation between 1248EPCB7 and GE Aerospace
Assuming the 90 days trading horizon 1248EPCB7 is expected to generate 1.88 times less return on investment than GE Aerospace. But when comparing it to its historical volatility, CCO Holdings 5375 is 4.54 times less risky than GE Aerospace. It trades about 0.1 of its potential returns per unit of risk. GE Aerospace is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 16,744 in GE Aerospace on September 3, 2024 and sell it today you would earn a total of 1,472 from holding GE Aerospace or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.26% |
| Values | Daily Returns |
CCO Holdings 5375 vs. GE Aerospace
Performance |
| Timeline |
| CCO Holdings 5375 |
| GE Aerospace |
1248EPCB7 and GE Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1248EPCB7 and GE Aerospace
The main advantage of trading using opposite 1248EPCB7 and GE Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1248EPCB7 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.| 1248EPCB7 vs. Lindblad Expeditions Holdings | 1248EPCB7 vs. ATRenew Inc DRC | 1248EPCB7 vs. Hafnia Limited | 1248EPCB7 vs. United Airlines Holdings |
| 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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