Correlation Between Verizon Communications and GENERAL
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By analyzing existing cross correlation between Verizon Communications and GENERAL ELEC CAP, you can compare the effects of market volatilities on Verizon Communications 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 Verizon Communications with a short position of GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verizon Communications and GENERAL.
Diversification Opportunities for Verizon Communications and GENERAL
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Verizon and GENERAL is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Verizon Communications and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP and Verizon Communications 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 Verizon Communications 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 ELEC CAP has no effect on the direction of Verizon Communications i.e., Verizon Communications and GENERAL go up and down completely randomly.
Pair Corralation between Verizon Communications and GENERAL
Allowing for the 90-day total investment horizon Verizon Communications is expected to generate 1.17 times more return on investment than GENERAL. However, Verizon Communications is 1.17 times more volatile than GENERAL ELEC CAP. It trades about 0.23 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.68 per unit of risk. If you would invest 4,162 in Verizon Communications on August 28, 2024 and sell it today you would earn a total of 236.00 from holding Verizon Communications or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 28.57% |
| Values | Daily Returns |
Verizon Communications vs. GENERAL ELEC CAP
Performance |
| Timeline |
| Verizon Communications |
| GENERAL ELEC CAP |
Verizon Communications and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verizon Communications and GENERAL
The main advantage of trading using opposite Verizon Communications and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verizon Communications 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.| Verizon Communications vs. T Mobile | Verizon Communications vs. Lumen Technologies | Verizon Communications vs. Comcast Corp | Verizon Communications vs. ATT Inc |
| GENERAL vs. Pinterest | GENERAL vs. SmartStop Self Storage | GENERAL vs. Deluxe | GENERAL vs. National CineMedia |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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