Correlation Between NEP Old and GE Vernova

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

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

Diversification Opportunities for NEP Old and GE Vernova

0.0

Correlation Coefficient

NEP Old  GE Vernova

Pay attention - limited upside

The 3 months correlation between NEP and GEV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NEP Old 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 NEP Old 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 NEP Old 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 NEP Old i.e., NEP Old and GE Vernova go up and down completely randomly.

Pair Corralation between NEP Old and GE Vernova

Considering the 90-day investment horizon NEP Old is expected to under-perform the GE Vernova. In addition to that, NEP Old is 1.31 times more volatile than GE Vernova LLC. It trades about -0.31 of its total potential returns per unit of risk. GE Vernova LLC is currently generating about -0.01 per unit of volatility. If you would invest  33,380  in GE Vernova LLC on December 27, 2024 and sell it today you would lose (3,080) from holding GE Vernova LLC or give up 9.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	39.34%
Values	Daily Returns

NEP Old  vs.  GE Vernova LLC

NEP Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days NEP Old has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

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

Pair Trading with NEP Old and GE Vernova

The main advantage of trading using opposite NEP Old and GE Vernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEP Old 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.

The idea behind NEP Old and GE Vernova LLC 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.