Correlation Between Fluent and GE Vernova
Can any of the company-specific risk be diversified away by investing in both Fluent 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 Fluent and GE Vernova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and GE Vernova LLC, you can compare the effects of market volatilities on Fluent 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 Fluent with a short position of GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and GE Vernova.
Diversification Opportunities for Fluent and GE Vernova
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fluent and GEV is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Fluent 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 Fluent 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 Fluent 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 Fluent i.e., Fluent and GE Vernova go up and down completely randomly.
Pair Corralation between Fluent and GE Vernova
Given the investment horizon of 90 days Fluent Inc is expected to under-perform the GE Vernova. In addition to that, Fluent is 1.45 times more volatile than GE Vernova LLC. It trades about -0.02 of its total potential returns per unit of risk. GE Vernova LLC is currently generating about 0.21 per unit of volatility. If you would invest 16,349 in GE Vernova LLC on September 3, 2024 and sell it today you would earn a total of 17,063 from holding GE Vernova LLC or generate 104.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fluent Inc vs. GE Vernova LLC
Performance |
| Timeline |
| Fluent Inc |
| GE Vernova LLC |
Fluent and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluent and GE Vernova
The main advantage of trading using opposite Fluent and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent 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.| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
| GE Vernova vs. Titan Machinery | GE Vernova vs. Asbury Automotive Group | GE Vernova vs. Ryanair Holdings PLC | GE Vernova vs. Lululemon Athletica |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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