Correlation Between GM and Hangzhou Xili
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By analyzing existing cross correlation between General Motors and Hangzhou Xili Intelligent, you can compare the effects of market volatilities on GM and Hangzhou Xili 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 Hangzhou Xili. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Hangzhou Xili.
Diversification Opportunities for GM and Hangzhou Xili
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GM and Hangzhou is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Hangzhou Xili Intelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Xili Intelligent 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 Hangzhou Xili. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Xili Intelligent has no effect on the direction of GM i.e., GM and Hangzhou Xili go up and down completely randomly.
Pair Corralation between GM and Hangzhou Xili
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Hangzhou Xili. In addition to that, GM is 1.77 times more volatile than Hangzhou Xili Intelligent. It trades about -0.1 of its total potential returns per unit of risk. Hangzhou Xili Intelligent is currently generating about 0.01 per unit of volatility. If you would invest 1,130 in Hangzhou Xili Intelligent on January 5, 2025 and sell it today you would earn a total of 2.00 from holding Hangzhou Xili Intelligent or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Hangzhou Xili Intelligent
Performance |
| Timeline |
| General Motors |
| Hangzhou Xili Intelligent |
GM and Hangzhou Xili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Hangzhou Xili
The main advantage of trading using opposite GM and Hangzhou Xili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Hangzhou Xili 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 Hangzhou Xili will offset losses from the drop in Hangzhou Xili's long position.The idea behind General Motors and Hangzhou Xili Intelligent 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.| Hangzhou Xili vs. Shannon Semiconductor Technology | Hangzhou Xili vs. Southchip Semiconductor Technology | Hangzhou Xili vs. Ciwen Media Co | Hangzhou Xili vs. Nexchip Semiconductor Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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