Correlation Between GE Vernova and Atlantica Sustainable
Can any of the company-specific risk be diversified away by investing in both GE Vernova and Atlantica Sustainable 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 GE Vernova and Atlantica Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GE Vernova LLC and Atlantica Sustainable Infrastructure, you can compare the effects of market volatilities on GE Vernova and Atlantica Sustainable 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 GE Vernova with a short position of Atlantica Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and Atlantica Sustainable.
Diversification Opportunities for GE Vernova and Atlantica Sustainable
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GEV and Atlantica is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and Atlantica Sustainable Infrastr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantica Sustainable and GE Vernova 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 GE Vernova LLC are associated (or correlated) with Atlantica Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantica Sustainable has no effect on the direction of GE Vernova i.e., GE Vernova and Atlantica Sustainable go up and down completely randomly.
Pair Corralation between GE Vernova and Atlantica Sustainable
Considering the 90-day investment horizon GE Vernova LLC is expected to generate 1.79 times more return on investment than Atlantica Sustainable. However, GE Vernova is 1.79 times more volatile than Atlantica Sustainable Infrastructure. It trades about 0.19 of its potential returns per unit of risk. Atlantica Sustainable Infrastructure is currently generating about 0.0 per unit of risk. If you would invest 13,125 in GE Vernova LLC on September 13, 2024 and sell it today you would earn a total of 21,255 from holding GE Vernova LLC or generate 161.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 36.36% |
| Values | Daily Returns |
GE Vernova LLC vs. Atlantica Sustainable Infrastr
Performance |
| Timeline |
| GE Vernova LLC |
| Atlantica Sustainable |
GE Vernova and Atlantica Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and Atlantica Sustainable
The main advantage of trading using opposite GE Vernova and Atlantica Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova position performs unexpectedly, Atlantica Sustainable 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 Atlantica Sustainable will offset losses from the drop in Atlantica Sustainable's long position.| GE Vernova vs. Atlantica Sustainable Infrastructure | GE Vernova vs. Verde Clean Fuels | GE Vernova vs. ReNew Energy Global | GE Vernova vs. Ellomay Capital |
| Atlantica Sustainable vs. Clearway Energy | Atlantica Sustainable vs. Brookfield Renewable Corp | Atlantica Sustainable vs. Nextera Energy Partners | Atlantica Sustainable vs. Brookfield Renewable Partners |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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