Correlation Between GE Vernova and Suburban Propane
Can any of the company-specific risk be diversified away by investing in both GE Vernova and Suburban Propane 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 Suburban Propane 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 Suburban Propane Partners, you can compare the effects of market volatilities on GE Vernova and Suburban Propane 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 Suburban Propane. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and Suburban Propane.
Diversification Opportunities for GE Vernova and Suburban Propane
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GEV and Suburban is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and Suburban Propane Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suburban Propane Partners 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 Suburban Propane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suburban Propane Partners has no effect on the direction of GE Vernova i.e., GE Vernova and Suburban Propane go up and down completely randomly.
Pair Corralation between GE Vernova and Suburban Propane
Considering the 90-day investment horizon GE Vernova is expected to generate 4.33 times less return on investment than Suburban Propane. In addition to that, GE Vernova is 3.08 times more volatile than Suburban Propane Partners. It trades about 0.04 of its total potential returns per unit of risk. Suburban Propane Partners is currently generating about 0.48 per unit of volatility. If you would invest 1,775 in Suburban Propane Partners on November 5, 2024 and sell it today you would earn a total of 338.00 from holding Suburban Propane Partners or generate 19.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE Vernova LLC vs. Suburban Propane Partners
Performance |
| Timeline |
| GE Vernova LLC |
| Suburban Propane Partners |
GE Vernova and Suburban Propane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and Suburban Propane
The main advantage of trading using opposite GE Vernova and Suburban Propane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova position performs unexpectedly, Suburban Propane 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 Suburban Propane will offset losses from the drop in Suburban Propane's long position.| GE Vernova vs. CAVA Group, | GE Vernova vs. Aegon NV ADR | GE Vernova vs. Biglari Holdings | GE Vernova vs. BJs Restaurants |
| Suburban Propane vs. Northwest Natural Gas | Suburban Propane vs. NewJersey Resources | Suburban Propane vs. Atmos Energy | Suburban Propane vs. Chesapeake Utilities |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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