Correlation Between 577778BQ5 and GE Aerospace
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By analyzing existing cross correlation between MAY DEPT STORES and GE Aerospace, you can compare the effects of market volatilities on 577778BQ5 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 577778BQ5 with a short position of GE Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of 577778BQ5 and GE Aerospace.
Diversification Opportunities for 577778BQ5 and GE Aerospace
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 577778BQ5 and GE Aerospace is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding MAY DEPT STORES and GE Aerospace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Aerospace and 577778BQ5 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 MAY DEPT STORES 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 577778BQ5 i.e., 577778BQ5 and GE Aerospace go up and down completely randomly.
Pair Corralation between 577778BQ5 and GE Aerospace
Assuming the 90 days trading horizon MAY DEPT STORES is expected to under-perform the GE Aerospace. In addition to that, 577778BQ5 is 3.86 times more volatile than GE Aerospace. It trades about -0.2 of its total potential returns per unit of risk. GE Aerospace is currently generating about 0.13 per unit of volatility. If you would invest 17,464 in GE Aerospace on August 31, 2024 and sell it today you would earn a total of 752.00 from holding GE Aerospace or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 30.43% |
| Values | Daily Returns |
MAY DEPT STORES vs. GE Aerospace
Performance |
| Timeline |
| MAY DEPT STORES |
| GE Aerospace |
577778BQ5 and GE Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 577778BQ5 and GE Aerospace
The main advantage of trading using opposite 577778BQ5 and GE Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 577778BQ5 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.| 577778BQ5 vs. AEP TEX INC | 577778BQ5 vs. US BANK NATIONAL | 577778BQ5 vs. Bank of America | 577778BQ5 vs. GE Aerospace |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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