Correlation Between China Ming and GE Aerospace
Can any of the company-specific risk be diversified away by investing in both China Ming 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 China Ming and GE Aerospace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Ming Yang and GE Aerospace, you can compare the effects of market volatilities on China Ming 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 China Ming with a short position of GE Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Ming and GE Aerospace.
Diversification Opportunities for China Ming and GE Aerospace
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and GE Aerospace is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Ming Yang and GE Aerospace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Aerospace and China Ming 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 China Ming Yang 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 China Ming i.e., China Ming and GE Aerospace go up and down completely randomly.
Pair Corralation between China Ming and GE Aerospace
If you would invest 13,826 in GE Aerospace on January 26, 2024 and sell it today you would earn a total of 2,093 from holding GE Aerospace or generate 15.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
China Ming Yang vs. GE Aerospace
Performance |
| Timeline |
| China Ming Yang |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GE Aerospace |
China Ming and GE Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Ming and GE Aerospace
The main advantage of trading using opposite China Ming and GE Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Ming 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.| China Ming vs. Morgan Stanley | China Ming vs. Rave Restaurant Group | China Ming vs. Pyrophyte Acquisition Corp | China Ming vs. Inflection Point Acquisition |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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