Correlation Between GE Aerospace and Sartorius Stedim
Can any of the company-specific risk be diversified away by investing in both GE Aerospace and Sartorius Stedim 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 Sartorius Stedim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Aerospace and Sartorius Stedim Biotech, you can compare the effects of market volatilities on GE Aerospace and Sartorius Stedim 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 Sartorius Stedim. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and Sartorius Stedim.
Diversification Opportunities for GE Aerospace and Sartorius Stedim
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GE Aerospace and Sartorius is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and Sartorius Stedim Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sartorius Stedim Biotech 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 Sartorius Stedim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sartorius Stedim Biotech has no effect on the direction of GE Aerospace i.e., GE Aerospace and Sartorius Stedim go up and down completely randomly.
Pair Corralation between GE Aerospace and Sartorius Stedim
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 0.55 times more return on investment than Sartorius Stedim. However, GE Aerospace is 1.81 times less risky than Sartorius Stedim. It trades about 0.11 of its potential returns per unit of risk. Sartorius Stedim Biotech is currently generating about -0.02 per unit of risk. If you would invest 25,104 in GE Aerospace on June 7, 2025 and sell it today you would earn a total of 2,489 from holding GE Aerospace or generate 9.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE Aerospace vs. Sartorius Stedim Biotech
Performance |
| Timeline |
| GE Aerospace |
| Sartorius Stedim Biotech |
GE Aerospace and Sartorius Stedim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and Sartorius Stedim
The main advantage of trading using opposite GE Aerospace and Sartorius Stedim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, Sartorius Stedim 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 Sartorius Stedim will offset losses from the drop in Sartorius Stedim's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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