Correlation Between AMCON Distributing and GE Vernova
Can any of the company-specific risk be diversified away by investing in both AMCON Distributing 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 AMCON Distributing and GE Vernova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMCON Distributing and GE Vernova LLC, you can compare the effects of market volatilities on AMCON Distributing 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 AMCON Distributing with a short position of GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and GE Vernova.
Diversification Opportunities for AMCON Distributing and GE Vernova
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMCON and GEV is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing i.e., AMCON Distributing and GE Vernova go up and down completely randomly.
Pair Corralation between AMCON Distributing and GE Vernova
Considering the 90-day investment horizon AMCON Distributing is expected to generate 0.92 times more return on investment than GE Vernova. However, AMCON Distributing is 1.08 times less risky than GE Vernova. It trades about 0.06 of its potential returns per unit of risk. GE Vernova LLC is currently generating about -0.04 per unit of risk. If you would invest 12,598 in AMCON Distributing on November 18, 2024 and sell it today you would earn a total of 443.00 from holding AMCON Distributing or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMCON Distributing vs. GE Vernova LLC
Performance |
| Timeline |
| AMCON Distributing |
| GE Vernova LLC |
AMCON Distributing and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMCON Distributing and GE Vernova
The main advantage of trading using opposite AMCON Distributing and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing 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.| AMCON Distributing vs. The Chefs Warehouse | AMCON Distributing vs. G Willi Food International | AMCON Distributing vs. SpartanNash Co | AMCON Distributing vs. Calavo Growers |
| GE Vernova vs. Summit Materials | GE Vernova vs. Eldorado Gold Corp | GE Vernova vs. Donegal Group B | GE Vernova vs. Sandstorm Gold Ltd |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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