Correlation Between ETF Securities and GE Aerospace
Can any of the company-specific risk be diversified away by investing in both ETF Securities and GE Aerospace at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ETF Securities and GE Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ETF Securities and GE Aerospace, you can compare the effects of market volatilities on ETF Securities 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 ETF Securities with a short position of GE Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of ETF Securities and GE Aerospace.
Diversification Opportunities for ETF Securities and GE Aerospace
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ETF and GE Aerospace is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ETF Securities and GE Aerospace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Aerospace and ETF Securities 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 ETF Securities 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 ETF Securities i.e., ETF Securities and GE Aerospace go up and down completely randomly.
Pair Corralation between ETF Securities and GE Aerospace
If you would invest 8,514 in GE Aerospace on January 17, 2024 and sell it today you would earn a total of 6,856 from holding GE Aerospace or generate 80.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ETF Securities vs. GE Aerospace
Performance |
| Timeline |
| ETF Securities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GE Aerospace |
ETF Securities and GE Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ETF Securities and GE Aerospace
The main advantage of trading using opposite ETF Securities and GE Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ETF Securities 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.| ETF Securities vs. Vanguard Total Stock | ETF Securities vs. SPDR SP 500 | ETF Securities vs. iShares Core SP | ETF Securities vs. Vanguard Total Bond |
| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Eaton PLC | GE Aerospace vs. Parker Hannifin | GE Aerospace vs. Emerson Electric |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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