Correlation Between GE Vernova and HomesToLife
Can any of the company-specific risk be diversified away by investing in both GE Vernova and HomesToLife 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 HomesToLife 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 HomesToLife, you can compare the effects of market volatilities on GE Vernova and HomesToLife 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 HomesToLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and HomesToLife.
Diversification Opportunities for GE Vernova and HomesToLife
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between GEV and HomesToLife is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and HomesToLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HomesToLife 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 HomesToLife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HomesToLife has no effect on the direction of GE Vernova i.e., GE Vernova and HomesToLife go up and down completely randomly.
Pair Corralation between GE Vernova and HomesToLife
Considering the 90-day investment horizon GE Vernova LLC is expected to generate 0.34 times more return on investment than HomesToLife. However, GE Vernova LLC is 2.97 times less risky than HomesToLife. It trades about 0.19 of its potential returns per unit of risk. HomesToLife is currently generating about 0.05 per unit of risk. If you would invest 13,125 in GE Vernova LLC on September 2, 2024 and sell it today you would earn a total of 20,287 from holding GE Vernova LLC or generate 154.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 25.43% |
| Values | Daily Returns |
GE Vernova LLC vs. HomesToLife
Performance |
| Timeline |
| GE Vernova LLC |
| HomesToLife |
GE Vernova and HomesToLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and HomesToLife
The main advantage of trading using opposite GE Vernova and HomesToLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova position performs unexpectedly, HomesToLife 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 HomesToLife will offset losses from the drop in HomesToLife's long position.| GE Vernova vs. Sonos Inc | GE Vernova vs. JD Sports Fashion | GE Vernova vs. Boston Properties | GE Vernova vs. Mid Atlantic Home Health |
| HomesToLife vs. Sun Life Financial | HomesToLife vs. Direct Line Insurance | HomesToLife vs. Maiden Holdings | HomesToLife vs. Air Lease |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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