Correlation Between GE Vernova and Eco Wave

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

Diversification Opportunities for GE Vernova and Eco Wave

0.72

Correlation Coefficient

GE Vernova  Eco Wave

Poor diversification

The 3 months correlation between GEV and Eco is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and Eco Wave Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eco Wave Power 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 Eco Wave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eco Wave Power has no effect on the direction of GE Vernova i.e., GE Vernova and Eco Wave go up and down completely randomly.

Pair Corralation between GE Vernova and Eco Wave

Considering the 90-day investment horizon GE Vernova LLC is expected to generate 0.46 times more return on investment than Eco Wave. However, GE Vernova LLC is 2.19 times less risky than Eco Wave. It trades about 0.3 of its potential returns per unit of risk. Eco Wave Power 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  24,309  from holding GE Vernova LLC or generate 59.78% 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.  Eco Wave Power

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 23 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady technical and fundamental indicators, GE Vernova showed solid returns over the last few months and may actually be approaching a breakup point.

Eco Wave Power

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Eco Wave Power are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Eco Wave exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GE Vernova and Eco Wave

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

The idea behind GE Vernova LLC and Eco Wave Power 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.