Correlation Between GE Vernova and Inflection Point
Can any of the company-specific risk be diversified away by investing in both GE Vernova and Inflection Point 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 Inflection Point 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 Inflection Point Acquisition, you can compare the effects of market volatilities on GE Vernova and Inflection Point 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and Inflection Point.
Diversification Opportunities for GE Vernova and Inflection Point
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GEV and Inflection is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of GE Vernova i.e., GE Vernova and Inflection Point go up and down completely randomly.
Pair Corralation between GE Vernova and Inflection Point
Considering the 90-day investment horizon GE Vernova is expected to generate 4.32 times less return on investment than Inflection Point. But when comparing it to its historical volatility, GE Vernova LLC is 16.9 times less risky than Inflection Point. It trades about 0.2 of its potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Inflection Point Acquisition on August 24, 2024 and sell it today you would earn a total of 1,086 from holding Inflection Point Acquisition or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 44.18% |
| Values | Daily Returns |
GE Vernova LLC vs. Inflection Point Acquisition
Performance |
| Timeline |
| GE Vernova LLC |
| Inflection Point Acq |
GE Vernova and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and Inflection Point
The main advantage of trading using opposite GE Vernova and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point's long position.| GE Vernova vs. Sun Country Airlines | GE Vernova vs. Where Food Comes | GE Vernova vs. Ihuman Inc | GE Vernova vs. AMCON Distributing |
| Inflection Point vs. Pearson PLC ADR | Inflection Point vs. Aris Water Solutions | Inflection Point vs. Alliant Energy Corp | Inflection Point vs. GE Vernova LLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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