Correlation Between GE Vernova and U Power
Can any of the company-specific risk be diversified away by investing in both GE Vernova and U Power 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 U Power 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 U Power Limited, you can compare the effects of market volatilities on GE Vernova and U Power 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 U Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and U Power.
Diversification Opportunities for GE Vernova and U Power
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GEV and UCAR is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and U Power Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Power Limited 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 U Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Power Limited has no effect on the direction of GE Vernova i.e., GE Vernova and U Power go up and down completely randomly.
Pair Corralation between GE Vernova and U Power
Considering the 90-day investment horizon GE Vernova is expected to generate 6.41 times less return on investment than U Power. But when comparing it to its historical volatility, GE Vernova LLC is 23.36 times less risky than U Power. It trades about 0.19 of its potential returns per unit of risk. U Power Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.00 in U Power Limited on September 2, 2024 and sell it today you would earn a total of 632.00 from holding U Power Limited or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 42.3% |
| Values | Daily Returns |
GE Vernova LLC vs. U Power Limited
Performance |
| Timeline |
| GE Vernova LLC |
| U Power Limited |
GE Vernova and U Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and U Power
The main advantage of trading using opposite GE Vernova and U Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova position performs unexpectedly, U Power 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 U Power will offset losses from the drop in U Power's long position.| GE Vernova vs. Sonos Inc | GE Vernova vs. JD Sports Fashion | GE Vernova vs. Boston Properties | GE Vernova vs. Mid Atlantic Home Health |
| U Power vs. Advance Auto Parts | U Power vs. Tractor Supply | U Power vs. Genuine Parts Co | U Power vs. Five Below |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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