Correlation Between GE Vernova and 05684BAC1

Can any of the company-specific risk be diversified away by investing in both GE Vernova and 05684BAC1 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 05684BAC1 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 BCSF 255 13 OCT 26, you can compare the effects of market volatilities on GE Vernova and 05684BAC1 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 05684BAC1. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Vernova and 05684BAC1.

Diversification Opportunities for GE Vernova and 05684BAC1

-0.25

Correlation Coefficient

GE Vernova  05684BAC1

Very good diversification

The 3 months correlation between GEV and 05684BAC1 is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and BCSF 255 13 OCT 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCSF 255 13 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 05684BAC1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCSF 255 13 has no effect on the direction of GE Vernova i.e., GE Vernova and 05684BAC1 go up and down completely randomly.

Pair Corralation between GE Vernova and 05684BAC1

Considering the 90-day investment horizon GE Vernova LLC is expected to generate 5.87 times more return on investment than 05684BAC1. However, GE Vernova is 5.87 times more volatile than BCSF 255 13 OCT 26. It trades about 0.27 of its potential returns per unit of risk. BCSF 255 13 OCT 26 is currently generating about -0.08 per unit of risk. If you would invest  22,559  in GE Vernova LLC on September 13, 2024 and sell it today you would earn a total of  11,821  from holding GE Vernova LLC or generate 52.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

GE Vernova LLC  vs.  BCSF 255 13 OCT 26

GE Vernova LLC

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GE Vernova LLC are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, GE Vernova showed solid returns over the last few months and may actually be approaching a breakup point.

BCSF 255 13

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BCSF 255 13 OCT 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 05684BAC1 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with GE Vernova and 05684BAC1

The main advantage of trading using opposite GE Vernova and 05684BAC1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Vernova position performs unexpectedly, 05684BAC1 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 05684BAC1 will offset losses from the drop in 05684BAC1's long position.

The idea behind GE Vernova LLC and BCSF 255 13 OCT 26 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 CEOs Directory module to screen CEOs from public companies around the world.