Correlation Between GM and CSIF I
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By analyzing existing cross correlation between General Motors and CSIF I Real, you can compare the effects of market volatilities on GM and CSIF I 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 CSIF I. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and CSIF I.
Diversification Opportunities for GM and CSIF I
Significant diversification
The 3 months correlation between GM and CSIF is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and CSIF I Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSIF I Real 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 CSIF I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSIF I Real has no effect on the direction of GM i.e., GM and CSIF I go up and down completely randomly.
Pair Corralation between GM and CSIF I
Allowing for the 90-day total investment horizon General Motors is expected to generate 3.09 times more return on investment than CSIF I. However, GM is 3.09 times more volatile than CSIF I Real. It trades about 0.04 of its potential returns per unit of risk. CSIF I Real is currently generating about 0.06 per unit of risk. If you would invest 3,568 in General Motors on October 13, 2024 and sell it today you would earn a total of 1,417 from holding General Motors or generate 39.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
General Motors vs. CSIF I Real
Performance |
| Timeline |
| General Motors |
| CSIF I Real |
GM and CSIF I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and CSIF I
The main advantage of trading using opposite GM and CSIF I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, CSIF I 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 CSIF I will offset losses from the drop in CSIF I's long position.| GM vs. Canoo Inc | GM vs. Aquagold International | GM vs. Morningstar Unconstrained Allocation | GM vs. Thrivent High Yield |
| CSIF I vs. Procimmo Real Estate | CSIF I vs. SPDR Dow Jones | CSIF I vs. Baloise Holding AG | CSIF I vs. Autoneum Holding AG |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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