Correlation Between EXPEDIA and GE Aerospace
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By analyzing existing cross correlation between EXPEDIA GROUP INC and GE Aerospace, you can compare the effects of market volatilities on EXPEDIA 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 EXPEDIA with a short position of GE Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXPEDIA and GE Aerospace.
Diversification Opportunities for EXPEDIA and GE Aerospace
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between EXPEDIA and GE Aerospace is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding EXPEDIA GROUP INC and GE Aerospace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Aerospace and EXPEDIA 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 EXPEDIA GROUP INC 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 EXPEDIA i.e., EXPEDIA and GE Aerospace go up and down completely randomly.
Pair Corralation between EXPEDIA and GE Aerospace
Assuming the 90 days trading horizon EXPEDIA GROUP INC is expected to under-perform the GE Aerospace. But the bond apears to be less risky and, when comparing its historical volatility, EXPEDIA GROUP INC is 2.78 times less risky than GE Aerospace. The bond trades about -0.15 of its potential returns per unit of risk. The GE Aerospace is currently generating about 0.19 of returns per unit of risk over similar time horizon. 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 | 95.24% |
| Values | Daily Returns |
EXPEDIA GROUP INC vs. GE Aerospace
Performance |
| Timeline |
| EXPEDIA GROUP INC |
| GE Aerospace |
EXPEDIA and GE Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXPEDIA and GE Aerospace
The main advantage of trading using opposite EXPEDIA and GE Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXPEDIA 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.| EXPEDIA vs. AEP TEX INC | EXPEDIA vs. US BANK NATIONAL | EXPEDIA vs. Bank of America | EXPEDIA vs. GE Aerospace |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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