Correlation Between GM and Guangdong Tengen
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and Guangdong Tengen Industrial, you can compare the effects of market volatilities on GM and Guangdong Tengen 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 Guangdong Tengen. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Guangdong Tengen.
Diversification Opportunities for GM and Guangdong Tengen
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GM and Guangdong is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Guangdong Tengen Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tengen Ind 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 Guangdong Tengen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tengen Ind has no effect on the direction of GM i.e., GM and Guangdong Tengen go up and down completely randomly.
Pair Corralation between GM and Guangdong Tengen
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Guangdong Tengen. In addition to that, GM is 1.71 times more volatile than Guangdong Tengen Industrial. It trades about -0.17 of its total potential returns per unit of risk. Guangdong Tengen Industrial is currently generating about 0.26 per unit of volatility. If you would invest 967.00 in Guangdong Tengen Industrial on September 12, 2024 and sell it today you would earn a total of 85.00 from holding Guangdong Tengen Industrial or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
General Motors vs. Guangdong Tengen Industrial
Performance |
| Timeline |
| General Motors |
| Guangdong Tengen Ind |
GM and Guangdong Tengen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Guangdong Tengen
The main advantage of trading using opposite GM and Guangdong Tengen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Guangdong Tengen 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 Guangdong Tengen will offset losses from the drop in Guangdong Tengen's long position.The idea behind General Motors and Guangdong Tengen Industrial 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.| Guangdong Tengen vs. Chongqing Shunbo Aluminum | Guangdong Tengen vs. Aluminum Corp of | Guangdong Tengen vs. Guangdong Jingyi Metal | Guangdong Tengen vs. Hefei Metalforming Mach |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |