Correlation Between Atlantica Sustainable and GE Vernova
Can any of the company-specific risk be diversified away by investing in both Atlantica Sustainable 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 Atlantica Sustainable and GE Vernova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlantica Sustainable Infrastructure and GE Vernova LLC, you can compare the effects of market volatilities on Atlantica Sustainable 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 Atlantica Sustainable with a short position of GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantica Sustainable and GE Vernova.
Diversification Opportunities for Atlantica Sustainable and GE Vernova
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Atlantica and GEV is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Atlantica Sustainable Infrastr 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 Atlantica Sustainable 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 Atlantica Sustainable Infrastructure 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 Atlantica Sustainable i.e., Atlantica Sustainable and GE Vernova go up and down completely randomly.
Pair Corralation between Atlantica Sustainable and GE Vernova
Allowing for the 90-day total investment horizon Atlantica Sustainable is expected to generate 149.05 times less return on investment than GE Vernova. But when comparing it to its historical volatility, Atlantica Sustainable Infrastructure is 1.79 times less risky than GE Vernova. It trades about 0.0 of its potential returns per unit of risk. GE Vernova LLC is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 13,125 in GE Vernova LLC on August 30, 2024 and sell it today you would earn a total of 20,408 from holding GE Vernova LLC or generate 155.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 34.55% |
| Values | Daily Returns |
Atlantica Sustainable Infrastr vs. GE Vernova LLC
Performance |
| Timeline |
| Atlantica Sustainable |
| GE Vernova LLC |
Atlantica Sustainable and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantica Sustainable and GE Vernova
The main advantage of trading using opposite Atlantica Sustainable and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantica Sustainable 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.| Atlantica Sustainable vs. Clearway Energy | Atlantica Sustainable vs. Brookfield Renewable Corp | Atlantica Sustainable vs. Nextera Energy Partners | Atlantica Sustainable vs. Brookfield Renewable Partners |
| GE Vernova vs. Stepan Company | GE Vernova vs. Griffon | GE Vernova vs. Vera Bradley | GE Vernova vs. Eldorado Gold Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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