Correlation Between GE Vernova and Sweetgreen
Can any of the company-specific risk be diversified away by investing in both GE Vernova and Sweetgreen 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 Sweetgreen 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 Sweetgreen, you can compare the effects of market volatilities on GE Vernova and Sweetgreen 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 Sweetgreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and Sweetgreen.
Diversification Opportunities for GE Vernova and Sweetgreen
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GEV and Sweetgreen is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and Sweetgreen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sweetgreen 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 Sweetgreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sweetgreen has no effect on the direction of GE Vernova i.e., GE Vernova and Sweetgreen go up and down completely randomly.
Pair Corralation between GE Vernova and Sweetgreen
Considering the 90-day investment horizon GE Vernova LLC is expected to generate 0.85 times more return on investment than Sweetgreen. However, GE Vernova LLC is 1.17 times less risky than Sweetgreen. It trades about 0.05 of its potential returns per unit of risk. Sweetgreen is currently generating about -0.22 per unit of risk. If you would invest 33,000 in GE Vernova LLC on November 28, 2024 and sell it today you would earn a total of 904.00 from holding GE Vernova LLC or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE Vernova LLC vs. Sweetgreen
Performance |
| Timeline |
| GE Vernova LLC |
| Sweetgreen |
GE Vernova and Sweetgreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and Sweetgreen
The main advantage of trading using opposite GE Vernova and Sweetgreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova position performs unexpectedly, Sweetgreen 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 Sweetgreen will offset losses from the drop in Sweetgreen's long position.| GE Vernova vs. Autohome | GE Vernova vs. PepsiCo | GE Vernova vs. Federal Home Loan | GE Vernova vs. Molson Coors Brewing |
| Sweetgreen vs. Cannae Holdings | Sweetgreen vs. Brinker International | Sweetgreen vs. Jack In The | Sweetgreen vs. Biglari Holdings |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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