Correlation Between Figs and GE Vernova
Can any of the company-specific risk be diversified away by investing in both Figs 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 Figs and GE Vernova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Figs Inc and GE Vernova LLC, you can compare the effects of market volatilities on Figs 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 Figs with a short position of GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figs and GE Vernova.
Diversification Opportunities for Figs and GE Vernova
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Figs and GEV is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Figs Inc 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 Figs 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 Figs Inc 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 Figs i.e., Figs and GE Vernova go up and down completely randomly.
Pair Corralation between Figs and GE Vernova
Given the investment horizon of 90 days Figs is expected to generate 63.01 times less return on investment than GE Vernova. In addition to that, Figs is 1.3 times more volatile than GE Vernova LLC. It trades about 0.0 of its total potential returns per unit of risk. GE Vernova LLC is currently generating about 0.19 per unit of volatility. If you would invest 13,125 in GE Vernova LLC on September 12, 2024 and sell it today you would earn a total of 21,500 from holding GE Vernova LLC or generate 163.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 54.38% |
| Values | Daily Returns |
Figs Inc vs. GE Vernova LLC
Performance |
| Timeline |
| Figs Inc |
| GE Vernova LLC |
Figs and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Figs and GE Vernova
The main advantage of trading using opposite Figs and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figs 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.The idea behind Figs Inc and GE Vernova LLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| GE Vernova vs. Atlantica Sustainable Infrastructure | GE Vernova vs. Verde Clean Fuels | GE Vernova vs. ReNew Energy Global | GE Vernova vs. Ellomay Capital |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |