Correlation Between GE Vernova and Viking Holdings
Can any of the company-specific risk be diversified away by investing in both GE Vernova and Viking Holdings 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 Viking Holdings 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 Viking Holdings, you can compare the effects of market volatilities on GE Vernova and Viking Holdings 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 Viking Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and Viking Holdings.
Diversification Opportunities for GE Vernova and Viking Holdings
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GEV and Viking is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and Viking Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Holdings 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 Viking Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Holdings has no effect on the direction of GE Vernova i.e., GE Vernova and Viking Holdings go up and down completely randomly.
Pair Corralation between GE Vernova and Viking Holdings
Considering the 90-day investment horizon GE Vernova LLC is expected to generate 1.29 times more return on investment than Viking Holdings. However, GE Vernova is 1.29 times more volatile than Viking Holdings. It trades about 0.2 of its potential returns per unit of risk. Viking Holdings is currently generating about -0.07 per unit of risk. If you would invest 33,500 in GE Vernova LLC on October 9, 2024 and sell it today you would earn a total of 3,632 from holding GE Vernova LLC or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GE Vernova LLC vs. Viking Holdings
Performance |
| Timeline |
| GE Vernova LLC |
| Viking Holdings |
GE Vernova and Viking Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Vernova and Viking Holdings
The main advantage of trading using opposite GE Vernova and Viking Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova position performs unexpectedly, Viking Holdings 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 Viking Holdings will offset losses from the drop in Viking Holdings' long position.| GE Vernova vs. Weibo Corp | GE Vernova vs. Acumen Pharmaceuticals | GE Vernova vs. Getty Images Holdings | GE Vernova vs. Zhihu Inc ADR |
| Viking Holdings vs. Galaxy Gaming | Viking Holdings vs. Champion Gaming Group | Viking Holdings vs. SEI Investments | Viking Holdings vs. Fidus Investment 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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