Correlation Between GE Vernova and NiSource

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

Diversification Opportunities for GE Vernova and NiSource

0.79

Correlation Coefficient

GE Vernova  NiSource

Poor diversification

The 3 months correlation between GEV and NiSource is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and NiSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NiSource 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 NiSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NiSource has no effect on the direction of GE Vernova i.e., GE Vernova and NiSource go up and down completely randomly.

Pair Corralation between GE Vernova and NiSource

Considering the 90-day investment horizon GE Vernova LLC is expected to generate 2.22 times more return on investment than NiSource. However, GE Vernova is 2.22 times more volatile than NiSource. It trades about 0.32 of its potential returns per unit of risk. NiSource is currently generating about 0.11 per unit of risk. If you would invest  40,663  in GE Vernova LLC on May 7, 2025 and sell it today you would earn a total of  25,614  from holding GE Vernova LLC or generate 62.99% 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.  NiSource

GE Vernova LLC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GE Vernova LLC are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, GE Vernova showed solid returns over the last few months and may actually be approaching a breakup point.

NiSource

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in NiSource are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating forward indicators, NiSource may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with GE Vernova and NiSource

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

The idea behind GE Vernova LLC and NiSource 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.