Correlation Between GE Aerospace and Tuttle Capital

Can any of the company-specific risk be diversified away by investing in both GE Aerospace and Tuttle Capital 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 GE Aerospace and Tuttle Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GE Aerospace and Tuttle Capital Management, you can compare the effects of market volatilities on GE Aerospace and Tuttle Capital 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 GE Aerospace with a short position of Tuttle Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and Tuttle Capital.

Diversification Opportunities for GE Aerospace and Tuttle Capital

0.54

Correlation Coefficient

GE Aerospace  Tuttle Capital

Very weak diversification

The 3 months correlation between GE Aerospace and Tuttle is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Tuttle Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuttle Capital Management and GE Aerospace 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 GE Aerospace are associated (or correlated) with Tuttle Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuttle Capital Management has no effect on the direction of GE Aerospace i.e., GE Aerospace and Tuttle Capital go up and down completely randomly.

Pair Corralation between GE Aerospace and Tuttle Capital

If you would invest  16,810  in GE Aerospace on October 21, 2024 and sell it today you would earn a total of  1,475  from holding GE Aerospace or generate 8.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	5.26%
Values	Daily Returns

GE Aerospace  vs.  Tuttle Capital Management

GE Aerospace

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GE Aerospace has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, GE Aerospace is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Tuttle Capital Management

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tuttle Capital Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, Tuttle Capital is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with GE Aerospace and Tuttle Capital

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

The idea behind GE Aerospace and Tuttle Capital Management 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.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.