Correlation Between GE Vernova and Asure Software

Can any of the company-specific risk be diversified away by investing in both GE Vernova and Asure Software 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 GE Vernova and Asure Software into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GE Vernova LLC and Asure Software, you can compare the effects of market volatilities on GE Vernova and Asure Software 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 GE Vernova with a short position of Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and Asure Software.

Diversification Opportunities for GE Vernova and Asure Software

0.66

Correlation Coefficient

GE Vernova  Asure Software

Poor diversification

The 3 months correlation between GEV and Asure is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software and GE Vernova 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 GE Vernova LLC are associated (or correlated) with Asure Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asure Software has no effect on the direction of GE Vernova i.e., GE Vernova and Asure Software go up and down completely randomly.

Pair Corralation between GE Vernova and Asure Software

Considering the 90-day investment horizon GE Vernova LLC is expected to generate 1.21 times more return on investment than Asure Software. However, GE Vernova is 1.21 times more volatile than Asure Software. It trades about 0.13 of its potential returns per unit of risk. Asure Software is currently generating about 0.06 per unit of risk. If you would invest  19,818  in GE Vernova LLC on December 5, 2024 and sell it today you would earn a total of  11,862  from holding GE Vernova LLC or generate 59.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

GE Vernova LLC  vs.  Asure Software

GE Vernova LLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days GE Vernova LLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, GE Vernova is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Asure Software

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Asure Software are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Asure Software may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with GE Vernova and Asure Software

The main advantage of trading using opposite GE Vernova and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova position performs unexpectedly, Asure Software 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 Asure Software will offset losses from the drop in Asure Software's long position.

The idea behind GE Vernova LLC and Asure Software pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.