Correlation Between GE Vernova and Viskase Companies

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

Diversification Opportunities for GE Vernova and Viskase Companies

0.0

Correlation Coefficient

GE Vernova  Viskase Companies

Pay attention - limited upside

The 3 months correlation between GEV and Viskase is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and Viskase Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viskase Companies 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 Viskase Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viskase Companies has no effect on the direction of GE Vernova i.e., GE Vernova and Viskase Companies go up and down completely randomly.

Pair Corralation between GE Vernova and Viskase Companies

If you would invest  33,380  in GE Vernova LLC on December 27, 2024 and sell it today you would lose (1,610) from holding GE Vernova LLC or give up 4.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

GE Vernova LLC  vs.  Viskase Companies

GE Vernova LLC

Risk-Adjusted Performance

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 latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Viskase Companies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Viskase Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Viskase Companies is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with GE Vernova and Viskase Companies

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

The idea behind GE Vernova LLC and Viskase Companies 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.

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.