Correlation Between MASTEC and GE Aerospace
Specify exactly 2 symbols:
By analyzing existing cross correlation between MASTEC INC 45 and GE Aerospace, you can compare the effects of market volatilities on MASTEC 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 MASTEC with a short position of GE Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of MASTEC and GE Aerospace.
Diversification Opportunities for MASTEC and GE Aerospace
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between MASTEC and GE Aerospace is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding MASTEC INC 45 and GE Aerospace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Aerospace and MASTEC 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 MASTEC INC 45 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 MASTEC i.e., MASTEC and GE Aerospace go up and down completely randomly.
Pair Corralation between MASTEC and GE Aerospace
Assuming the 90 days trading horizon MASTEC INC 45 is expected to under-perform the GE Aerospace. But the bond apears to be less risky and, when comparing its historical volatility, MASTEC INC 45 is 1.34 times less risky than GE Aerospace. The bond trades about -0.18 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 | 90.48% |
| Values | Daily Returns |
MASTEC INC 45 vs. GE Aerospace
Performance |
| Timeline |
| MASTEC INC 45 |
| GE Aerospace |
MASTEC and GE Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MASTEC and GE Aerospace
The main advantage of trading using opposite MASTEC and GE Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MASTEC 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.The idea behind MASTEC INC 45 and GE Aerospace pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |