Correlation Between GE Vernova and Fusion Fuel
Can any of the company-specific risk be diversified away by investing in both GE Vernova and Fusion Fuel 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 Fusion Fuel 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 Fusion Fuel Green, you can compare the effects of market volatilities on GE Vernova and Fusion Fuel 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 Fusion Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and Fusion Fuel.
Diversification Opportunities for GE Vernova and Fusion Fuel
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GEV and Fusion is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and Fusion Fuel Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fusion Fuel Green 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 Fusion Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fusion Fuel Green has no effect on the direction of GE Vernova i.e., GE Vernova and Fusion Fuel go up and down completely randomly.
Pair Corralation between GE Vernova and Fusion Fuel
Considering the 90-day investment horizon GE Vernova LLC is expected to generate 1.17 times more return on investment than Fusion Fuel. However, GE Vernova is 1.17 times more volatile than Fusion Fuel Green. It trades about 0.07 of its potential returns per unit of risk. Fusion Fuel Green is currently generating about -0.37 per unit of risk. If you would invest 29,868 in GE Vernova LLC on January 11, 2025 and sell it today you would earn a total of 1,714 from holding GE Vernova LLC or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE Vernova LLC vs. Fusion Fuel Green
Performance |
| Timeline |
| GE Vernova LLC |
| Fusion Fuel Green |
GE Vernova and Fusion Fuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and Fusion Fuel
The main advantage of trading using opposite GE Vernova and Fusion Fuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova position performs unexpectedly, Fusion Fuel 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 Fusion Fuel will offset losses from the drop in Fusion Fuel's long position.| GE Vernova vs. IDP Education Limited | GE Vernova vs. Strategic Education | GE Vernova vs. Daily Journal Corp | GE Vernova vs. Golden Energy Offshore |
| Fusion Fuel vs. Advent Technologies Holdings | Fusion Fuel vs. Fluence Energy | Fusion Fuel vs. Enlight Renewable Energy | Fusion Fuel vs. Renew Energy Global |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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