Correlation Between GM and Poly Real
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By analyzing existing cross correlation between General Motors and Poly Real Estate, you can compare the effects of market volatilities on GM and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Poly Real.
Diversification Opportunities for GM and Poly Real
Very weak diversification
The 3 months correlation between GM and Poly is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of GM i.e., GM and Poly Real go up and down completely randomly.
Pair Corralation between GM and Poly Real
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.47 times more return on investment than Poly Real. However, GM is 1.47 times more volatile than Poly Real Estate. It trades about 0.12 of its potential returns per unit of risk. Poly Real Estate is currently generating about -0.09 per unit of risk. If you would invest 5,197 in General Motors on August 31, 2024 and sell it today you would earn a total of 362.00 from holding General Motors or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Poly Real Estate
Performance |
| Timeline |
| General Motors |
| Poly Real Estate |
GM and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Poly Real
The main advantage of trading using opposite GM and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.The idea behind General Motors and Poly Real Estate 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.| Poly Real vs. Guangdong Jingyi Metal | Poly Real vs. Heilongjiang Transport Development | Poly Real vs. Silkroad Visual Technology | Poly Real vs. Chongqing Shunbo Aluminum |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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