Correlation Between GM and Bonree Data
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By analyzing existing cross correlation between General Motors and Bonree Data Technology, you can compare the effects of market volatilities on GM and Bonree Data 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 Bonree Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Bonree Data.
Diversification Opportunities for GM and Bonree Data
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GM and Bonree is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Bonree Data Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonree Data Technology 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 Bonree Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonree Data Technology has no effect on the direction of GM i.e., GM and Bonree Data go up and down completely randomly.
Pair Corralation between GM and Bonree Data
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Bonree Data. But the stock apears to be less risky and, when comparing its historical volatility, General Motors is 2.02 times less risky than Bonree Data. The stock trades about -0.18 of its potential returns per unit of risk. The Bonree Data Technology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,680 in Bonree Data Technology on November 6, 2024 and sell it today you would earn a total of 240.00 from holding Bonree Data Technology or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
General Motors vs. Bonree Data Technology
Performance |
| Timeline |
| General Motors |
| Bonree Data Technology |
GM and Bonree Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Bonree Data
The main advantage of trading using opposite GM and Bonree Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Bonree Data 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 Bonree Data will offset losses from the drop in Bonree Data's long position.The idea behind General Motors and Bonree Data Technology 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.| Bonree Data vs. Invengo Information Technology | Bonree Data vs. Hygon Information Technology | Bonree Data vs. Guangzhou Seagull Kitchen | Bonree Data vs. Jiangsu Financial Leasing |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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