Correlation Between Alternus Energy and GE Vernova
Can any of the company-specific risk be diversified away by investing in both Alternus Energy and GE Vernova 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 Alternus Energy and GE Vernova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alternus Energy Group and GE Vernova LLC, you can compare the effects of market volatilities on Alternus Energy and GE Vernova 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 Alternus Energy with a short position of GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alternus Energy and GE Vernova.
Diversification Opportunities for Alternus Energy and GE Vernova
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alternus and GEV is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Alternus Energy Group and GE Vernova LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Vernova LLC and Alternus Energy 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 Alternus Energy Group are associated (or correlated) with GE Vernova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GE Vernova LLC has no effect on the direction of Alternus Energy i.e., Alternus Energy and GE Vernova go up and down completely randomly.
Pair Corralation between Alternus Energy and GE Vernova
Given the investment horizon of 90 days Alternus Energy Group is expected to under-perform the GE Vernova. In addition to that, Alternus Energy is 1.46 times more volatile than GE Vernova LLC. It trades about -0.39 of its total potential returns per unit of risk. GE Vernova LLC is currently generating about 0.05 per unit of volatility. If you would invest 36,648 in GE Vernova LLC on November 9, 2024 and sell it today you would earn a total of 835.00 from holding GE Vernova LLC or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alternus Energy Group vs. GE Vernova LLC
Performance |
| Timeline |
| Alternus Energy Group |
| GE Vernova LLC |
Alternus Energy and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alternus Energy and GE Vernova
The main advantage of trading using opposite Alternus Energy and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alternus Energy position performs unexpectedly, GE Vernova 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 Vernova will offset losses from the drop in GE Vernova's long position.| Alternus Energy vs. Griffon | Alternus Energy vs. Primoris Services | Alternus Energy vs. Jeld Wen Holding | Alternus Energy vs. Lindblad Expeditions Holdings |
| GE Vernova vs. Exchange Bank | GE Vernova vs. SEI Investments | GE Vernova vs. PetMed Express | GE Vernova vs. MYT Netherlands Parent |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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