Correlation Between ZOOZ Power and GE Vernova
Can any of the company-specific risk be diversified away by investing in both ZOOZ Power 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 ZOOZ Power and GE Vernova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZOOZ Power Ltd and GE Vernova LLC, you can compare the effects of market volatilities on ZOOZ Power 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 ZOOZ Power with a short position of GE Vernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZOOZ Power and GE Vernova.
Diversification Opportunities for ZOOZ Power and GE Vernova
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ZOOZ and GEV is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding ZOOZ Power Ltd 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 ZOOZ Power 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 ZOOZ Power Ltd 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 ZOOZ Power i.e., ZOOZ Power and GE Vernova go up and down completely randomly.
Pair Corralation between ZOOZ Power and GE Vernova
Given the investment horizon of 90 days ZOOZ Power Ltd is expected to under-perform the GE Vernova. In addition to that, ZOOZ Power is 1.39 times more volatile than GE Vernova LLC. It trades about -0.04 of its total potential returns per unit of risk. GE Vernova LLC is currently generating about 0.16 per unit of volatility. If you would invest 13,115 in GE Vernova LLC on November 3, 2024 and sell it today you would earn a total of 24,173 from holding GE Vernova LLC or generate 184.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.2% |
| Values | Daily Returns |
ZOOZ Power Ltd vs. GE Vernova LLC
Performance |
| Timeline |
| ZOOZ Power |
| GE Vernova LLC |
ZOOZ Power and GE Vernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZOOZ Power and GE Vernova
The main advantage of trading using opposite ZOOZ Power and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZOOZ Power 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.| ZOOZ Power vs. Ainsworth Game Technology | ZOOZ Power vs. Proficient Auto Logistics, | ZOOZ Power vs. Inflection Point Acquisition | ZOOZ Power vs. GameStop Corp |
| GE Vernova vs. Global E Online | GE Vernova vs. Townsquare Media | GE Vernova vs. International Consolidated Airlines | GE Vernova vs. Entravision Communications |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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