Correlation Between GE Vernova and AMGEN
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By analyzing existing cross correlation between GE Vernova LLC and AMGEN INC, you can compare the effects of market volatilities on GE Vernova and AMGEN 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 AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and AMGEN.
Diversification Opportunities for GE Vernova and AMGEN
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GEV and AMGEN is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and AMGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 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 AMGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGEN INC has no effect on the direction of GE Vernova i.e., GE Vernova and AMGEN go up and down completely randomly.
Pair Corralation between GE Vernova and AMGEN
Considering the 90-day investment horizon GE Vernova LLC is expected to generate 2.98 times more return on investment than AMGEN. However, GE Vernova is 2.98 times more volatile than AMGEN INC. It trades about 0.19 of its potential returns per unit of risk. AMGEN INC is currently generating about -0.17 per unit of risk. If you would invest 26,950 in GE Vernova LLC on September 13, 2024 and sell it today you would earn a total of 6,538 from holding GE Vernova LLC or generate 24.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 69.77% |
| Values | Daily Returns |
GE Vernova LLC vs. AMGEN INC
Performance |
| Timeline |
| GE Vernova LLC |
| AMGEN INC |
GE Vernova and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and AMGEN
The main advantage of trading using opposite GE Vernova and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova position performs unexpectedly, AMGEN 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 AMGEN will offset losses from the drop in AMGEN's long position.| GE Vernova vs. Atlantica Sustainable Infrastructure | GE Vernova vs. Verde Clean Fuels | GE Vernova vs. ReNew Energy Global | GE Vernova vs. Ellomay Capital |
| AMGEN vs. Oatly Group AB | AMGEN vs. Perseus Mining Limited | AMGEN vs. Monster Beverage Corp | AMGEN vs. Forsys Metals Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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