Correlation Between GE Vernova and Fluent
Can any of the company-specific risk be diversified away by investing in both GE Vernova and Fluent 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 Fluent 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 Fluent Inc, you can compare the effects of market volatilities on GE Vernova and Fluent 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 Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and Fluent.
Diversification Opportunities for GE Vernova and Fluent
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between GEV and Fluent is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc 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 Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of GE Vernova i.e., GE Vernova and Fluent go up and down completely randomly.
Pair Corralation between GE Vernova and Fluent
Considering the 90-day investment horizon GE Vernova LLC is expected to generate 0.69 times more return on investment than Fluent. However, GE Vernova LLC is 1.45 times less risky than Fluent. It trades about 0.21 of its potential returns per unit of risk. Fluent Inc is currently generating about -0.02 per unit of risk. 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 |
GE Vernova LLC vs. Fluent Inc
Performance |
| Timeline |
| GE Vernova LLC |
| Fluent Inc |
GE Vernova and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and Fluent
The main advantage of trading using opposite GE Vernova and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.| GE Vernova vs. Titan Machinery | GE Vernova vs. Asbury Automotive Group | GE Vernova vs. Ryanair Holdings PLC | GE Vernova vs. Lululemon Athletica |
| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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