Correlation Between GM and KTL GLOBAL
Can any of the company-specific risk be diversified away by investing in both GM and KTL GLOBAL 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 KTL GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and KTL GLOBAL, you can compare the effects of market volatilities on GM and KTL GLOBAL 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 KTL GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and KTL GLOBAL.
Diversification Opportunities for GM and KTL GLOBAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and KTL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and KTL GLOBAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KTL GLOBAL 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 KTL GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KTL GLOBAL has no effect on the direction of GM i.e., GM and KTL GLOBAL go up and down completely randomly.
Pair Corralation between GM and KTL GLOBAL
If you would invest 3,503 in General Motors on November 9, 2024 and sell it today you would earn a total of 1,290 from holding General Motors or generate 36.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.52% |
| Values | Daily Returns |
General Motors vs. KTL GLOBAL
Performance |
| Timeline |
| General Motors |
| KTL GLOBAL |
GM and KTL GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and KTL GLOBAL
The main advantage of trading using opposite GM and KTL GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, KTL GLOBAL 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 KTL GLOBAL will offset losses from the drop in KTL GLOBAL's long position.The idea behind General Motors and KTL 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.| KTL GLOBAL vs. GRUPO CARSO A1 | KTL GLOBAL vs. GEELY AUTOMOBILE | KTL GLOBAL vs. CONTAGIOUS GAMING INC | KTL GLOBAL vs. QINGCI GAMES INC |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |