General Electric Correlations

GCP Stock

180.50 3.50 1.98%

The current 90-days correlation between General Electric and BE Semiconductor Industries is -0.05 (i.e., Good diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as General Electric moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if General Electric moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

General Electric Correlation With Market

Modest diversification

The correlation between General Electric and DJI is 0.2 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding General Electric and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to General Electric could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace General Electric when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back General Electric - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling General Electric to buy it.

Moving together with General Stock

0.8	E908	Lyxor 1	Pair Corr
0.72	DBPE	Xtrackers LevDAX	Pair Corr

Moving against General Stock

0.72	DBPD	Xtrackers ShortDAX	Pair Corr
0.44	MSF	Microsoft	Pair Corr
0.43	MSF	Microsoft	Pair Corr
0.43	MSF	Microsoft	Pair Corr
0.42	MSF	Microsoft	Pair Corr
0.4	APC	Apple Inc	Pair Corr
0.36	APC	Apple Inc	Pair Corr
0.36	APC	Apple Inc	Pair Corr
0.35	APC	Apple Inc	Pair Corr
0.34	APC	Apple Inc	Pair Corr
0.33	APC	Apple Inc	Pair Corr

Related Correlations Analysis

	BSI	LTT	7QG	ELG	1HH	SC3	G91
BSI		-0.27	-0.7	0.68	-0.71	0.78	0.09	BSI
LTT	-0.27		0.2	-0.08	0.47	-0.26	-0.25	LTT
7QG	-0.7	0.2		-0.11	0.81	-0.85	-0.58	7QG
ELG	0.68	-0.08	-0.11		-0.21	0.27	-0.39	ELG
1HH	-0.71	0.47	0.81	-0.21		-0.86	-0.46	1HH
SC3	0.78	-0.26	-0.85	0.27	-0.86		0.54	SC3
G91	0.09	-0.25	-0.58	-0.39	-0.46	0.54		G91
	BSI	LTT	7QG	ELG	1HH	SC3	G91

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

1HH	+ 0.81	7QG
SC3	+ 0.78	BSI
ELG	+ 0.68	BSI
G91	+ 0.54	SC3
1HH	+ 0.47	LTT
SC3	+ 0.27	ELG

High negative correlations

SC3	- 0.86	1HH
SC3	- 0.85	7QG
1HH	- 0.71	BSI
7QG	- 0.7	BSI
G91	- 0.58	7QG
G91	- 0.46	1HH

Risk-Adjusted Indicators

There is a big difference between General Stock performing well and General Electric Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze General Electric's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
BSI	2.32	(0.08)	0.00	(0.24)	0.00	0.00	5.99	(5.59)	18.94
LTT	2.54	(0.06)	0.04	0.02	3.18	(2.71)	5.35	(5.65)	18.28
7QG	1.59	0.19	0.22	(1.01)	1.44	(2.04)	3.64	(2.69)	14.77
ELG	1.97	0.02	0.05	0.46	2.47	(2.27)	4.27	(4.61)	17.28
1HH	3.41	1.02	0.26	1.80	3.40	(4.15)	7.05	(5.44)	28.36
SC3	1.34	(0.56)	0.00	(1.78)	0.00	0.00	2.12	(3.20)	18.61
G91	0.43	(0.11)	0.00	0.42	0.00	0.00	1.11	(1.98)	6.50

General Electric Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with General Electric stock to make a market-neutral strategy. Peer analysis of General Electric could also be used in its relative valuation, which is a method of valuing General Electric by comparing valuation metrics with similar companies.

BE Semiconductor Industries Lattice Semiconductor SIDETRADE EO 1 Elmos Semiconductor SE Hua Hong Semiconductor SCANSOURCE Globe Trade Centre American Airlines Group Alcoa Corp Apple Inc Best Buy Co Citigroup SentinelOne CVS Health Corp Chevron Corp

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