Correlation Between GE Vernova and Natural Alternatives
Can any of the company-specific risk be diversified away by investing in both GE Vernova and Natural Alternatives 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 Natural Alternatives 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 Natural Alternatives International, you can compare the effects of market volatilities on GE Vernova and Natural Alternatives 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 Natural Alternatives. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and Natural Alternatives.
Diversification Opportunities for GE Vernova and Natural Alternatives
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GEV and Natural is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and Natural Alternatives Internati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Alternatives 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 Natural Alternatives. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Alternatives has no effect on the direction of GE Vernova i.e., GE Vernova and Natural Alternatives go up and down completely randomly.
Pair Corralation between GE Vernova and Natural Alternatives
Considering the 90-day investment horizon GE Vernova LLC is expected to generate 1.27 times more return on investment than Natural Alternatives. However, GE Vernova is 1.27 times more volatile than Natural Alternatives International. It trades about 0.2 of its potential returns per unit of risk. Natural Alternatives International is currently generating about 0.05 per unit of risk. If you would invest 29,546 in GE Vernova LLC on September 4, 2024 and sell it today you would earn a total of 4,208 from holding GE Vernova LLC or generate 14.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE Vernova LLC vs. Natural Alternatives Internati
Performance |
| Timeline |
| GE Vernova LLC |
| Natural Alternatives |
GE Vernova and Natural Alternatives Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and Natural Alternatives
The main advantage of trading using opposite GE Vernova and Natural Alternatives positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova position performs unexpectedly, Natural Alternatives 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 Natural Alternatives will offset losses from the drop in Natural Alternatives' long position.| GE Vernova vs. Natural Alternatives International | GE Vernova vs. Turning Point Brands | GE Vernova vs. BBB Foods | GE Vernova vs. Ispire Technology Common |
| Natural Alternatives vs. FitLife Brands, Common | Natural Alternatives vs. Lifeway Foods | Natural Alternatives vs. Else Nutrition Holdings | Natural Alternatives vs. Central Garden Pet |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |