Correlation Between Bemobi Mobile and General Motors
Can any of the company-specific risk be diversified away by investing in both Bemobi Mobile and General Motors 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 Bemobi Mobile and General Motors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bemobi Mobile Tech and General Motors, you can compare the effects of market volatilities on Bemobi Mobile and General Motors 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 Bemobi Mobile with a short position of General Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bemobi Mobile and General Motors.
Diversification Opportunities for Bemobi Mobile and General Motors
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bemobi and General is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bemobi Mobile Tech and General Motors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Motors and Bemobi Mobile 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 Bemobi Mobile Tech are associated (or correlated) with General Motors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Motors has no effect on the direction of Bemobi Mobile i.e., Bemobi Mobile and General Motors go up and down completely randomly.
Pair Corralation between Bemobi Mobile and General Motors
Assuming the 90 days trading horizon Bemobi Mobile is expected to generate 6.58 times less return on investment than General Motors. But when comparing it to its historical volatility, Bemobi Mobile Tech is 1.34 times less risky than General Motors. It trades about 0.03 of its potential returns per unit of risk. General Motors is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,072 in General Motors on August 27, 2024 and sell it today you would earn a total of 3,435 from holding General Motors or generate 67.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bemobi Mobile Tech vs. General Motors
Performance |
| Timeline |
| Bemobi Mobile Tech |
| General Motors |
Bemobi Mobile and General Motors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bemobi Mobile and General Motors
The main advantage of trading using opposite Bemobi Mobile and General Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bemobi Mobile position performs unexpectedly, General Motors 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 General Motors will offset losses from the drop in General Motors' long position.| Bemobi Mobile vs. Charter Communications | Bemobi Mobile vs. Fras le SA | Bemobi Mobile vs. Clave Indices De | Bemobi Mobile vs. BTG Pactual Logstica |
| General Motors vs. The Bank of | General Motors vs. Bread Financial Holdings | General Motors vs. Bemobi Mobile Tech | General Motors vs. T Mobile |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |