Correlation Between GM and Lootom Telcovideo
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By analyzing existing cross correlation between General Motors and Lootom Telcovideo Network, you can compare the effects of market volatilities on GM and Lootom Telcovideo 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 Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Lootom Telcovideo.
Diversification Opportunities for GM and Lootom Telcovideo
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GM and Lootom is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network 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 Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of GM i.e., GM and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between GM and Lootom Telcovideo
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Lootom Telcovideo. In addition to that, GM is 1.12 times more volatile than Lootom Telcovideo Network. It trades about -0.34 of its total potential returns per unit of risk. Lootom Telcovideo Network is currently generating about 0.22 per unit of volatility. If you would invest 829.00 in Lootom Telcovideo Network on November 27, 2024 and sell it today you would earn a total of 57.00 from holding Lootom Telcovideo Network or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 75.0% |
| Values | Daily Returns |
General Motors vs. Lootom Telcovideo Network
Performance |
| Timeline |
| General Motors |
| Lootom Telcovideo Network |
GM and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Lootom Telcovideo
The main advantage of trading using opposite GM and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo's long position.The idea behind General Motors and Lootom Telcovideo Network 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.| Lootom Telcovideo vs. PetroChina Co Ltd | Lootom Telcovideo vs. Industrial and Commercial | Lootom Telcovideo vs. China Petroleum Chemical | Lootom Telcovideo vs. China Construction Bank |
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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