Correlation Between GM and Jangho Group
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By analyzing existing cross correlation between General Motors and Jangho Group Co, you can compare the effects of market volatilities on GM and Jangho Group 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 Jangho Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Jangho Group.
Diversification Opportunities for GM and Jangho Group
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GM and Jangho is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Jangho Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jangho Group 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 Jangho Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jangho Group has no effect on the direction of GM i.e., GM and Jangho Group go up and down completely randomly.
Pair Corralation between GM and Jangho Group
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.69 times more return on investment than Jangho Group. However, GM is 1.69 times more volatile than Jangho Group Co. It trades about 0.14 of its potential returns per unit of risk. Jangho Group Co is currently generating about 0.13 per unit of risk. If you would invest 5,180 in General Motors on September 3, 2024 and sell it today you would earn a total of 379.00 from holding General Motors or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
General Motors vs. Jangho Group Co
Performance |
| Timeline |
| General Motors |
| Jangho Group |
GM and Jangho Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Jangho Group
The main advantage of trading using opposite GM and Jangho Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Jangho Group 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 Jangho Group will offset losses from the drop in Jangho Group's long position.The idea behind General Motors and Jangho Group 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.| Jangho Group vs. BTG Hotels Group | Jangho Group vs. Tsingtao Brewery Co | Jangho Group vs. Jonjee Hi tech Industrial | Jangho Group vs. Juneyao Airlines |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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