Correlation Between Fusion Fuel and GE Vernova
Can any of the company-specific risk be diversified away by investing in both Fusion Fuel 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 Fusion Fuel and GE Vernova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fusion Fuel Green and GE Vernova LLC, you can compare the effects of market volatilities on Fusion Fuel 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 Fusion Fuel with a short position of GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fusion Fuel and GE Vernova.
Diversification Opportunities for Fusion Fuel and GE Vernova
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fusion and GEV is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Fusion Fuel Green 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 Fusion Fuel 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 Fusion Fuel Green 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 Fusion Fuel i.e., Fusion Fuel and GE Vernova go up and down completely randomly.
Pair Corralation between Fusion Fuel and GE Vernova
Assuming the 90 days horizon Fusion Fuel Green is expected to generate 6.49 times more return on investment than GE Vernova. However, Fusion Fuel is 6.49 times more volatile than GE Vernova LLC. It trades about 0.03 of its potential returns per unit of risk. GE Vernova LLC is currently generating about 0.19 per unit of risk. If you would invest 118.00 in Fusion Fuel Green on August 30, 2024 and sell it today you would lose (116.51) from holding Fusion Fuel Green or give up 98.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 34.55% |
| Values | Daily Returns |
Fusion Fuel Green vs. GE Vernova LLC
Performance |
| Timeline |
| Fusion Fuel Green |
| GE Vernova LLC |
Fusion Fuel and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fusion Fuel and GE Vernova
The main advantage of trading using opposite Fusion Fuel and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fusion Fuel 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.| Fusion Fuel vs. Fusion Fuel Green | Fusion Fuel vs. Advent Technologies Holdings | Fusion Fuel vs. Eos Energy Enterprises | Fusion Fuel vs. CuriosityStream |
| GE Vernova vs. Stepan Company | GE Vernova vs. Griffon | GE Vernova vs. Vera Bradley | GE Vernova vs. Eldorado Gold 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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