Correlation Between GM and Ziel Home

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both GM and Ziel Home at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GM and Ziel Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Ziel Home Furnishing, you can compare the effects of market volatilities on GM and Ziel Home 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 Ziel Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Ziel Home.

Diversification Opportunities for GM and Ziel Home

0.31
  Correlation Coefficient
 GM

Weak diversification

The 3 months correlation between GM and Ziel is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Ziel Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziel Home Furnishing 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 Ziel Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziel Home Furnishing has no effect on the direction of GM i.e., GM and Ziel Home go up and down completely randomly.

Pair Corralation between GM and Ziel Home

Allowing for the 90-day total investment horizon General Motors is expected to generate 0.61 times more return on investment than Ziel Home. However, General Motors is 1.63 times less risky than Ziel Home. It trades about 0.03 of its potential returns per unit of risk. Ziel Home Furnishing is currently generating about 0.0 per unit of risk. If you would invest  3,902  in General Motors on November 27, 2024 and sell it today you would earn a total of  755.00  from holding General Motors or generate 19.35% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy81.95%
ValuesDaily Returns

General Motors  vs.  Ziel Home Furnishing

 Performance 
       Timeline  
General Motors 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days General Motors has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.
Ziel Home Furnishing 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Ziel Home Furnishing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Ziel Home is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

GM and Ziel Home Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GM and Ziel Home

The main advantage of trading using opposite GM and Ziel Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Ziel Home 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 Ziel Home will offset losses from the drop in Ziel Home's long position.
GM vs. Tesla Inc
GM vs. Rivian Automotive
GM vs. Nio Class A
GM vs. Xpeng Inc
The idea behind General Motors and Ziel Home Furnishing 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.
Ziel Home vs. China Life Insurance
Ziel Home vs. Cinda Securities Co
Ziel Home vs. Piotech Inc A
Ziel Home vs. Dongxing Sec 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 CEOs Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
CEOs Directory
Screen CEOs from public companies around the world
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Global Correlations
Find global opportunities by holding instruments from different markets


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY