Correlation Between GM and CTBC USD
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By analyzing existing cross correlation between General Motors and CTBC USD Corporate, you can compare the effects of market volatilities on GM and CTBC USD 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 CTBC USD. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and CTBC USD.
Diversification Opportunities for GM and CTBC USD
Pay attention - limited upside
The 3 months correlation between GM and CTBC is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and CTBC USD Corporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTBC USD Corporate 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 CTBC USD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTBC USD Corporate has no effect on the direction of GM i.e., GM and CTBC USD go up and down completely randomly.
Pair Corralation between GM and CTBC USD
Allowing for the 90-day total investment horizon General Motors is expected to generate 4.81 times more return on investment than CTBC USD. However, GM is 4.81 times more volatile than CTBC USD Corporate. It trades about 0.12 of its potential returns per unit of risk. CTBC USD Corporate is currently generating about 0.18 per unit of risk. If you would invest 5,197 in General Motors on August 31, 2024 and sell it today you would earn a total of 353.00 from holding General Motors or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. CTBC USD Corporate
Performance |
| Timeline |
| General Motors |
| CTBC USD Corporate |
GM and CTBC USD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and CTBC USD
The main advantage of trading using opposite GM and CTBC USD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, CTBC USD 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 CTBC USD will offset losses from the drop in CTBC USD's long position.The idea behind General Motors and CTBC USD Corporate 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.| CTBC USD vs. Yuanta Daily Taiwan | CTBC USD vs. Cathay Taiwan 5G | CTBC USD vs. Yuanta Daily CSI | CTBC USD vs. Fubon FTSE Vietnam |
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 Positions Ratings module to 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.
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