Correlation Between GM and Silkroad Visual
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and Silkroad Visual Technology, you can compare the effects of market volatilities on GM and Silkroad Visual 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 Silkroad Visual. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Silkroad Visual.
Diversification Opportunities for GM and Silkroad Visual
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GM and Silkroad is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Silkroad Visual Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silkroad Visual Tech 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 Silkroad Visual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silkroad Visual Tech has no effect on the direction of GM i.e., GM and Silkroad Visual go up and down completely randomly.
Pair Corralation between GM and Silkroad Visual
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.49 times more return on investment than Silkroad Visual. However, General Motors is 2.02 times less risky than Silkroad Visual. It trades about 0.04 of its potential returns per unit of risk. Silkroad Visual Technology is currently generating about 0.02 per unit of risk. If you would invest 4,086 in General Motors on September 1, 2024 and sell it today you would earn a total of 1,473 from holding General Motors or generate 36.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.7% |
| Values | Daily Returns |
General Motors vs. Silkroad Visual Technology
Performance |
| Timeline |
| General Motors |
| Silkroad Visual Tech |
GM and Silkroad Visual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Silkroad Visual
The main advantage of trading using opposite GM and Silkroad Visual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Silkroad Visual 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 Silkroad Visual will offset losses from the drop in Silkroad Visual's long position.The idea behind General Motors and Silkroad Visual Technology 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.| Silkroad Visual vs. Cultural Investment Holdings | Silkroad Visual vs. Gome Telecom Equipment | Silkroad Visual vs. Bus Online Co | Silkroad Visual vs. Holitech Technology Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |