Correlation Between GM and Myinvestor Indexado
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By analyzing existing cross correlation between General Motors and Myinvestor Indexado Global, you can compare the effects of market volatilities on GM and Myinvestor Indexado 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 Myinvestor Indexado. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Myinvestor Indexado.
Diversification Opportunities for GM and Myinvestor Indexado
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GM and Myinvestor is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Myinvestor Indexado Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myinvestor Indexado 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 Myinvestor Indexado. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myinvestor Indexado has no effect on the direction of GM i.e., GM and Myinvestor Indexado go up and down completely randomly.
Pair Corralation between GM and Myinvestor Indexado
Allowing for the 90-day total investment horizon General Motors is expected to generate 3.41 times more return on investment than Myinvestor Indexado. However, GM is 3.41 times more volatile than Myinvestor Indexado Global. It trades about 0.16 of its potential returns per unit of risk. Myinvestor Indexado Global is currently generating about 0.36 per unit of risk. If you would invest 5,096 in General Motors on September 2, 2024 and sell it today you would earn a total of 463.00 from holding General Motors or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.48% |
| Values | Daily Returns |
General Motors vs. Myinvestor Indexado Global
Performance |
| Timeline |
| General Motors |
| Myinvestor Indexado |
GM and Myinvestor Indexado Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Myinvestor Indexado
The main advantage of trading using opposite GM and Myinvestor Indexado positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Myinvestor Indexado 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 Myinvestor Indexado will offset losses from the drop in Myinvestor Indexado's long position.The idea behind General Motors and Myinvestor Indexado 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.| Myinvestor Indexado vs. Metrovacesa SA | Myinvestor Indexado vs. Elecnor SA | Myinvestor Indexado vs. Mapfre | Myinvestor Indexado vs. Amper SA |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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