Correlation Between GM and CTBC 15
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By analyzing existing cross correlation between General Motors and CTBC 15 Developed, you can compare the effects of market volatilities on GM and CTBC 15 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 15. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and CTBC 15.
Diversification Opportunities for GM and CTBC 15
Excellent diversification
The 3 months correlation between GM and CTBC is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and CTBC 15 Developed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTBC 15 Developed 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 15. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTBC 15 Developed has no effect on the direction of GM i.e., GM and CTBC 15 go up and down completely randomly.
Pair Corralation between GM and CTBC 15
Allowing for the 90-day total investment horizon General Motors is expected to generate 3.12 times more return on investment than CTBC 15. However, GM is 3.12 times more volatile than CTBC 15 Developed. It trades about 0.05 of its potential returns per unit of risk. CTBC 15 Developed is currently generating about 0.01 per unit of risk. If you would invest 3,805 in General Motors on September 3, 2024 and sell it today you would earn a total of 1,754 from holding General Motors or generate 46.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.97% |
| Values | Daily Returns |
General Motors vs. CTBC 15 Developed
Performance |
| Timeline |
| General Motors |
| CTBC 15 Developed |
GM and CTBC 15 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and CTBC 15
The main advantage of trading using opposite GM and CTBC 15 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, CTBC 15 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 15 will offset losses from the drop in CTBC 15's long position.The idea behind General Motors and CTBC 15 Developed 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 15 vs. CTBC USD Corporate | CTBC 15 vs. CTBC 20 Year | CTBC 15 vs. CTBC TIP Customized | CTBC 15 vs. CTBC Treasury 20 |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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