Correlation Between GM and Grandblue Environment
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By analyzing existing cross correlation between General Motors and Grandblue Environment Co, you can compare the effects of market volatilities on GM and Grandblue Environment 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 Grandblue Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Grandblue Environment.
Diversification Opportunities for GM and Grandblue Environment
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GM and Grandblue is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Grandblue Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandblue Environment 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 Grandblue Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandblue Environment has no effect on the direction of GM i.e., GM and Grandblue Environment go up and down completely randomly.
Pair Corralation between GM and Grandblue Environment
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.52 times more return on investment than Grandblue Environment. However, GM is 1.52 times more volatile than Grandblue Environment Co. It trades about 0.04 of its potential returns per unit of risk. Grandblue Environment Co is currently generating about 0.02 per unit of risk. If you would invest 5,195 in General Motors on September 25, 2024 and sell it today you would earn a total of 151.50 from holding General Motors or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Grandblue Environment Co
Performance |
| Timeline |
| General Motors |
| Grandblue Environment |
GM and Grandblue Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Grandblue Environment
The main advantage of trading using opposite GM and Grandblue Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Grandblue Environment 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 Grandblue Environment will offset losses from the drop in Grandblue Environment's long position.The idea behind General Motors and Grandblue Environment Co 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.| Grandblue Environment vs. Jiangsu Yanghe Brewery | Grandblue Environment vs. JuneYao Dairy Co | Grandblue Environment vs. Zhengzhou Qianweiyangchu Food | Grandblue Environment vs. Great Sun Foods 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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