Correlation Between GM and Financial Street
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and Financial Street Holdings, you can compare the effects of market volatilities on GM and Financial Street 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 GM with a short position of Financial Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Financial Street.
Diversification Opportunities for GM and Financial Street
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GM and Financial is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Financial Street Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial Street Holdings and GM 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 General Motors are associated (or correlated) with Financial Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial Street Holdings has no effect on the direction of GM i.e., GM and Financial Street go up and down completely randomly.
Pair Corralation between GM and Financial Street
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Financial Street. In addition to that, GM is 1.2 times more volatile than Financial Street Holdings. It trades about -0.18 of its total potential returns per unit of risk. Financial Street Holdings is currently generating about -0.1 per unit of volatility. If you would invest 317.00 in Financial Street Holdings on November 5, 2024 and sell it today you would lose (15.00) from holding Financial Street Holdings or give up 4.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
General Motors vs. Financial Street Holdings
Performance |
| Timeline |
| General Motors |
| Financial Street Holdings |
GM and Financial Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Financial Street
The main advantage of trading using opposite GM and Financial Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Financial Street 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 Financial Street will offset losses from the drop in Financial Street's long position.The idea behind General Motors and Financial Street Holdings 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.| Financial Street vs. Jilin OLED Material | Financial Street vs. Shenzhen Cotran New | Financial Street vs. Orinko Advanced Plastics | Financial Street vs. Queclink Wireless Solutions |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |