Correlation Between GE Vernova and Global Payment
Can any of the company-specific risk be diversified away by investing in both GE Vernova and Global Payment 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 Global Payment 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 Global Payment Technologies, you can compare the effects of market volatilities on GE Vernova and Global Payment 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 Global Payment. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and Global Payment.
Diversification Opportunities for GE Vernova and Global Payment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GEV and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and Global Payment Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payment Techn 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 Global Payment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payment Techn has no effect on the direction of GE Vernova i.e., GE Vernova and Global Payment go up and down completely randomly.
Pair Corralation between GE Vernova and Global Payment
If you would invest 34,729 in GE Vernova LLC on October 25, 2024 and sell it today you would earn a total of 8,024 from holding GE Vernova LLC or generate 23.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
GE Vernova LLC vs. Global Payment Technologies
Performance |
| Timeline |
| GE Vernova LLC |
| Global Payment Techn |
GE Vernova and Global Payment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and Global Payment
The main advantage of trading using opposite GE Vernova and Global Payment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova position performs unexpectedly, Global Payment 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 Global Payment will offset losses from the drop in Global Payment's long position.| GE Vernova vs. Skillful Craftsman Education | GE Vernova vs. Playtika Holding Corp | GE Vernova vs. Scholastic | GE Vernova vs. Adtalem Global Education |
| Global Payment vs. GE Vernova LLC | Global Payment vs. Western Midstream Partners | Global Payment vs. Atmos Energy | Global Payment vs. CenterPoint Energy |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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