Correlation Between GM and CSG Holding
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By analyzing existing cross correlation between General Motors and CSG Holding Co, you can compare the effects of market volatilities on GM and CSG Holding 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 CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and CSG Holding.
Diversification Opportunities for GM and CSG Holding
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between GM and CSG is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding 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 CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of GM i.e., GM and CSG Holding go up and down completely randomly.
Pair Corralation between GM and CSG Holding
Allowing for the 90-day total investment horizon General Motors is expected to generate 2.67 times more return on investment than CSG Holding. However, GM is 2.67 times more volatile than CSG Holding Co. It trades about 0.04 of its potential returns per unit of risk. CSG Holding Co is currently generating about -0.11 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 | 90.91% |
| Values | Daily Returns |
General Motors vs. CSG Holding Co
Performance |
| Timeline |
| General Motors |
| CSG Holding |
GM and CSG Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and CSG Holding
The main advantage of trading using opposite GM and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding's long position.The idea behind General Motors and CSG Holding Co 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.| CSG Holding vs. Sichuan Yahua Industrial | CSG Holding vs. Western Metal Materials | CSG Holding vs. Hubei Xingfa Chemicals | CSG Holding vs. Ningbo Fujia Industrial |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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