Correlation Between Suburban Propane and GE Vernova
Can any of the company-specific risk be diversified away by investing in both Suburban Propane 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 Suburban Propane and GE Vernova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suburban Propane Partners and GE Vernova LLC, you can compare the effects of market volatilities on Suburban Propane 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 Suburban Propane with a short position of GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suburban Propane and GE Vernova.
Diversification Opportunities for Suburban Propane and GE Vernova
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Suburban and GEV is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Suburban Propane Partners 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 Suburban Propane 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 Suburban Propane Partners 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 Suburban Propane i.e., Suburban Propane and GE Vernova go up and down completely randomly.
Pair Corralation between Suburban Propane and GE Vernova
Considering the 90-day investment horizon Suburban Propane Partners is expected to generate 0.32 times more return on investment than GE Vernova. However, Suburban Propane Partners is 3.08 times less risky than GE Vernova. It trades about 0.48 of its potential returns per unit of risk. GE Vernova LLC is currently generating about 0.04 per unit of risk. If you would invest 1,775 in Suburban Propane Partners on November 5, 2024 and sell it today you would earn a total of 338.00 from holding Suburban Propane Partners or generate 19.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suburban Propane Partners vs. GE Vernova LLC
Performance |
| Timeline |
| Suburban Propane Partners |
| GE Vernova LLC |
Suburban Propane and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suburban Propane and GE Vernova
The main advantage of trading using opposite Suburban Propane and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suburban Propane 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.| Suburban Propane vs. Northwest Natural Gas | Suburban Propane vs. NewJersey Resources | Suburban Propane vs. Atmos Energy | Suburban Propane vs. Chesapeake Utilities |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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