Correlation Between GENERAL and GE Vernova
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By analyzing existing cross correlation between GENERAL ELEC CAP and GE Vernova LLC, you can compare the effects of market volatilities on GENERAL 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 GENERAL with a short position of GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and GE Vernova.
Diversification Opportunities for GENERAL and GE Vernova
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GENERAL and GEV is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL ELEC CAP 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 GENERAL 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 GENERAL ELEC CAP 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 GENERAL i.e., GENERAL and GE Vernova go up and down completely randomly.
Pair Corralation between GENERAL and GE Vernova
Assuming the 90 days trading horizon GENERAL is expected to generate 9.16 times less return on investment than GE Vernova. But when comparing it to its historical volatility, GENERAL ELEC CAP is 1.35 times less risky than GE Vernova. It trades about 0.03 of its potential returns per unit of risk. GE Vernova LLC is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 13,125 in GE Vernova LLC on September 12, 2024 and sell it today you would earn a total of 19,614 from holding GE Vernova LLC or generate 149.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 70.95% |
| Values | Daily Returns |
GENERAL ELEC CAP vs. GE Vernova LLC
Performance |
| Timeline |
| GENERAL ELEC CAP |
| GE Vernova LLC |
GENERAL and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and GE Vernova
The main advantage of trading using opposite GENERAL and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL 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.| GENERAL vs. Arrow Electronics | GENERAL vs. Paiute Oil Mining | GENERAL vs. Paysafe | GENERAL vs. Payoneer Global |
| GE Vernova vs. Atlantica Sustainable Infrastructure | GE Vernova vs. Verde Clean Fuels | GE Vernova vs. ReNew Energy Global | GE Vernova vs. Ellomay Capital |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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