Correlation Between GM and Qingdao Haier
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By analyzing existing cross correlation between General Motors and Qingdao Haier Biomedical, you can compare the effects of market volatilities on GM and Qingdao Haier 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 Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Qingdao Haier.
Diversification Opportunities for GM and Qingdao Haier
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GM and Qingdao is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Qingdao Haier Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Haier Biomedical 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 Qingdao Haier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Haier Biomedical has no effect on the direction of GM i.e., GM and Qingdao Haier go up and down completely randomly.
Pair Corralation between GM and Qingdao Haier
If you would invest 5,180 in General Motors on September 4, 2024 and sell it today you would earn a total of 324.00 from holding General Motors or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
General Motors vs. Qingdao Haier Biomedical
Performance |
| Timeline |
| General Motors |
| Qingdao Haier Biomedical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
GM and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Qingdao Haier
The main advantage of trading using opposite GM and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Qingdao Haier 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 Qingdao Haier will offset losses from the drop in Qingdao Haier's long position.The idea behind General Motors and Qingdao Haier Biomedical 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.| Qingdao Haier vs. Servyou Software Group | Qingdao Haier vs. Gan Yuan Foods | Qingdao Haier vs. China National Software | Qingdao Haier vs. JuneYao Dairy 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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