Correlation Between Vertiv Holdings and GENERAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Vertiv Holdings Co and GENERAL MTRS 66, you can compare the effects of market volatilities on Vertiv Holdings and GENERAL 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 Vertiv Holdings with a short position of GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vertiv Holdings and GENERAL.
Diversification Opportunities for Vertiv Holdings and GENERAL
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vertiv and GENERAL is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Vertiv Holdings Co and GENERAL MTRS 66 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL MTRS 66 and Vertiv Holdings 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 Vertiv Holdings Co are associated (or correlated) with GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL MTRS 66 has no effect on the direction of Vertiv Holdings i.e., Vertiv Holdings and GENERAL go up and down completely randomly.
Pair Corralation between Vertiv Holdings and GENERAL
Considering the 90-day investment horizon Vertiv Holdings Co is expected to generate 1.63 times more return on investment than GENERAL. However, Vertiv Holdings is 1.63 times more volatile than GENERAL MTRS 66. It trades about 0.22 of its potential returns per unit of risk. GENERAL MTRS 66 is currently generating about -0.08 per unit of risk. If you would invest 10,690 in Vertiv Holdings Co on September 2, 2024 and sell it today you would earn a total of 2,070 from holding Vertiv Holdings Co or generate 19.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vertiv Holdings Co vs. GENERAL MTRS 66
Performance |
| Timeline |
| Vertiv Holdings |
| GENERAL MTRS 66 |
Vertiv Holdings and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vertiv Holdings and GENERAL
The main advantage of trading using opposite Vertiv Holdings and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vertiv Holdings position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Vertiv Holdings vs. nVent Electric PLC | Vertiv Holdings vs. Hubbell | Vertiv Holdings vs. Advanced Energy Industries | Vertiv Holdings vs. Energizer Holdings |
| GENERAL vs. Yuexiu Transport Infrastructure | GENERAL vs. Playtika Holding Corp | GENERAL vs. Afya | GENERAL vs. Emerson Radio |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |