Correlation Between BAIYU Holdings and GE Vernova
Can any of the company-specific risk be diversified away by investing in both BAIYU Holdings 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 BAIYU Holdings and GE Vernova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BAIYU Holdings and GE Vernova LLC, you can compare the effects of market volatilities on BAIYU Holdings 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 BAIYU Holdings with a short position of GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAIYU Holdings and GE Vernova.
Diversification Opportunities for BAIYU Holdings and GE Vernova
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BAIYU and GEV is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding BAIYU Holdings 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 BAIYU Holdings 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 BAIYU Holdings 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 BAIYU Holdings i.e., BAIYU Holdings and GE Vernova go up and down completely randomly.
Pair Corralation between BAIYU Holdings and GE Vernova
Considering the 90-day investment horizon BAIYU Holdings is expected to under-perform the GE Vernova. In addition to that, BAIYU Holdings is 1.29 times more volatile than GE Vernova LLC. It trades about -0.15 of its total potential returns per unit of risk. GE Vernova LLC is currently generating about 0.2 per unit of volatility. If you would invest 29,546 in GE Vernova LLC on September 4, 2024 and sell it today you would earn a total of 4,208 from holding GE Vernova LLC or generate 14.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
BAIYU Holdings vs. GE Vernova LLC
Performance |
| Timeline |
| BAIYU Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GE Vernova LLC |
BAIYU Holdings and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAIYU Holdings and GE Vernova
The main advantage of trading using opposite BAIYU Holdings and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAIYU Holdings 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.| BAIYU Holdings vs. GE Vernova LLC | BAIYU Holdings vs. NRG Energy | BAIYU Holdings vs. Old Republic International | BAIYU Holdings vs. Cincinnati Financial |
| GE Vernova vs. Natural Alternatives International | GE Vernova vs. Turning Point Brands | GE Vernova vs. BBB Foods | GE Vernova vs. Ispire Technology Common |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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