Correlation Between Apartment Investment and General Electric

Can any of the company-specific risk be diversified away by investing in both Apartment Investment and General Electric 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 Apartment Investment and General Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Apartment Investment and and General Electric, you can compare the effects of market volatilities on Apartment Investment and General Electric 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 Apartment Investment with a short position of General Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apartment Investment and General Electric.

Diversification Opportunities for Apartment Investment and General Electric

0.0

Correlation Coefficient

Apartment Investment  General Electric

Pay attention - limited upside

The 3 months correlation between Apartment and General is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Apartment Investment and and General Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Electric and Apartment Investment 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 Apartment Investment and are associated (or correlated) with General Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Electric has no effect on the direction of Apartment Investment i.e., Apartment Investment and General Electric go up and down completely randomly.

Pair Corralation between Apartment Investment and General Electric

If you would invest  4,907  in Apartment Investment and on December 26, 2024 and sell it today you would earn a total of  94.00  from holding Apartment Investment and or generate 1.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Apartment Investment and  vs.  General Electric

Apartment Investment and

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Apartment Investment and are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Apartment Investment may actually be approaching a critical reversion point that can send shares even higher in April 2025.

General Electric

Risk-Adjusted Performance

OK

Over the last 90 days General Electric has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, General Electric is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Apartment Investment and General Electric

The main advantage of trading using opposite Apartment Investment and General Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apartment Investment position performs unexpectedly, General Electric 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 General Electric will offset losses from the drop in General Electric's long position.

The idea behind Apartment Investment and and General Electric 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.