Correlation Between GM and Kutxabank Bolsa
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By analyzing existing cross correlation between General Motors and Kutxabank Bolsa Global, you can compare the effects of market volatilities on GM and Kutxabank Bolsa 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 Kutxabank Bolsa. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Kutxabank Bolsa.
Diversification Opportunities for GM and Kutxabank Bolsa
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between GM and Kutxabank is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Kutxabank Bolsa Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kutxabank Bolsa Global 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 Kutxabank Bolsa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kutxabank Bolsa Global has no effect on the direction of GM i.e., GM and Kutxabank Bolsa go up and down completely randomly.
Pair Corralation between GM and Kutxabank Bolsa
Allowing for the 90-day total investment horizon General Motors is expected to generate 4.19 times more return on investment than Kutxabank Bolsa. However, GM is 4.19 times more volatile than Kutxabank Bolsa Global. It trades about 0.04 of its potential returns per unit of risk. Kutxabank Bolsa Global is currently generating about 0.01 per unit of risk. If you would invest 5,034 in General Motors on October 20, 2024 and sell it today you would earn a total of 63.00 from holding General Motors or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Kutxabank Bolsa Global
Performance |
| Timeline |
| General Motors |
| Kutxabank Bolsa Global |
GM and Kutxabank Bolsa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Kutxabank Bolsa
The main advantage of trading using opposite GM and Kutxabank Bolsa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Kutxabank Bolsa 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 Kutxabank Bolsa will offset losses from the drop in Kutxabank Bolsa's long position.The idea behind General Motors and Kutxabank Bolsa Global 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.| Kutxabank Bolsa vs. BK Variable Internacional | Kutxabank Bolsa vs. Naranja Renta Fija | Kutxabank Bolsa vs. Indexa Ms Rentabilidad | Kutxabank Bolsa vs. Myinvestor Indexado Global |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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