Correlation Between Global Payment and GE Vernova
Can any of the company-specific risk be diversified away by investing in both Global Payment and GE Vernova 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 Global Payment and GE Vernova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Payment Technologies and GE Vernova LLC, you can compare the effects of market volatilities on Global Payment and GE Vernova 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 Global Payment with a short position of GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Payment and GE Vernova.
Diversification Opportunities for Global Payment and GE Vernova
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and GEV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Payment Technologies and GE Vernova LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Vernova LLC and Global Payment 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 Global Payment Technologies are associated (or correlated) with GE Vernova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GE Vernova LLC has no effect on the direction of Global Payment i.e., Global Payment and GE Vernova go up and down completely randomly.
Pair Corralation between Global Payment and GE Vernova
If you would invest 13,115 in GE Vernova LLC on November 4, 2024 and sell it today you would earn a total of 24,173 from holding GE Vernova LLC or generate 184.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 43.23% |
| Values | Daily Returns |
Global Payment Technologies vs. GE Vernova LLC
Performance |
| Timeline |
| Global Payment Techn |
| GE Vernova LLC |
Global Payment and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Payment and GE Vernova
The main advantage of trading using opposite Global Payment and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Payment position performs unexpectedly, GE Vernova 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 GE Vernova will offset losses from the drop in GE Vernova's long position.| Global Payment vs. Here Media | Global Payment vs. Zane Interactive Publishing | Global Payment vs. Gannett Co | Global Payment vs. Vasta Platform |
| GE Vernova vs. CAVA Group, | GE Vernova vs. Aegon NV ADR | GE Vernova vs. Biglari Holdings | GE Vernova vs. BJs Restaurants |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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