Correlation Between GM and Goodwill E
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and Goodwill E Health, you can compare the effects of market volatilities on GM and Goodwill E 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 Goodwill E. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Goodwill E.
Diversification Opportunities for GM and Goodwill E
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GM and Goodwill is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Goodwill E Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodwill E Health 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 Goodwill E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodwill E Health has no effect on the direction of GM i.e., GM and Goodwill E go up and down completely randomly.
Pair Corralation between GM and Goodwill E
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.57 times more return on investment than Goodwill E. However, General Motors is 1.76 times less risky than Goodwill E. It trades about 0.03 of its potential returns per unit of risk. Goodwill E Health is currently generating about -0.01 per unit of risk. If you would invest 4,155 in General Motors on November 5, 2024 and sell it today you would earn a total of 791.00 from holding General Motors or generate 19.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.76% |
| Values | Daily Returns |
General Motors vs. Goodwill E Health
Performance |
| Timeline |
| General Motors |
| Goodwill E Health |
GM and Goodwill E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Goodwill E
The main advantage of trading using opposite GM and Goodwill E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Goodwill E 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 Goodwill E will offset losses from the drop in Goodwill E's long position.The idea behind General Motors and Goodwill E Health 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.| Goodwill E vs. Hainan Airlines Co | Goodwill E vs. Sichuan Fulin Transportation | Goodwill E vs. Vats Liquor Chain | Goodwill E vs. Jiangsu Jinling Sports |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |