Correlation Between GE Vernova and Global Crossing
Can any of the company-specific risk be diversified away by investing in both GE Vernova and Global Crossing 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 Crossing 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 Crossing Airlines, you can compare the effects of market volatilities on GE Vernova and Global Crossing 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 Crossing. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and Global Crossing.
Diversification Opportunities for GE Vernova and Global Crossing
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between GEV and Global is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and Global Crossing Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Crossing Airlines 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 Crossing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Crossing Airlines has no effect on the direction of GE Vernova i.e., GE Vernova and Global Crossing go up and down completely randomly.
Pair Corralation between GE Vernova and Global Crossing
Considering the 90-day investment horizon GE Vernova LLC is expected to generate 0.92 times more return on investment than Global Crossing. However, GE Vernova LLC is 1.08 times less risky than Global Crossing. It trades about 0.12 of its potential returns per unit of risk. Global Crossing Airlines is currently generating about 0.02 per unit of risk. If you would invest 30,086 in GE Vernova LLC on November 1, 2024 and sell it today you would earn a total of 8,208 from holding GE Vernova LLC or generate 27.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.33% |
| Values | Daily Returns |
GE Vernova LLC vs. Global Crossing Airlines
Performance |
| Timeline |
| GE Vernova LLC |
| Global Crossing Airlines |
GE Vernova and Global Crossing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and Global Crossing
The main advantage of trading using opposite GE Vernova and Global Crossing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova position performs unexpectedly, Global Crossing 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 Crossing will offset losses from the drop in Global Crossing's long position.| GE Vernova vs. Primo Brands | GE Vernova vs. SNDL Inc | GE Vernova vs. Keurig Dr Pepper | GE Vernova vs. Monster Beverage Corp |
| Global Crossing vs. Finnair Oyj | Global Crossing vs. Air France KLM SA | Global Crossing vs. AirAsia Group Berhad | Global Crossing vs. China Southern Airlines |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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