Correlation Between GE Vernova and Wingstop

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

Diversification Opportunities for GE Vernova and Wingstop

-0.03

Correlation Coefficient

GE Vernova  Wingstop

Good diversification

The 3 months correlation between GEV and Wingstop is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding GE Vernova LLC and Wingstop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wingstop 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 Wingstop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wingstop has no effect on the direction of GE Vernova i.e., GE Vernova and Wingstop go up and down completely randomly.

Pair Corralation between GE Vernova and Wingstop

Considering the 90-day investment horizon GE Vernova LLC is expected to generate 0.62 times more return on investment than Wingstop. However, GE Vernova LLC is 1.62 times less risky than Wingstop. It trades about 0.33 of its potential returns per unit of risk. Wingstop is currently generating about 0.13 per unit of risk. If you would invest  40,106  in GE Vernova LLC on May 6, 2025 and sell it today you would earn a total of  27,233  from holding GE Vernova LLC or generate 67.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GE Vernova LLC  vs.  Wingstop

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 25 (%) 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.

Wingstop

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Wingstop are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting basic indicators, Wingstop reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GE Vernova and Wingstop

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

The idea behind GE Vernova LLC and Wingstop 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.