Correlation Between GM and Asahi Intecc
Can any of the company-specific risk be diversified away by investing in both GM and Asahi Intecc at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GM and Asahi Intecc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Asahi Intecc Co, you can compare the effects of market volatilities on GM and Asahi Intecc 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 Asahi Intecc. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Asahi Intecc.
Diversification Opportunities for GM and Asahi Intecc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Asahi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Asahi Intecc Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asahi Intecc 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 Asahi Intecc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asahi Intecc has no effect on the direction of GM i.e., GM and Asahi Intecc go up and down completely randomly.
Pair Corralation between GM and Asahi Intecc
Allowing for the 90-day total investment horizon GM is expected to generate 16.66 times less return on investment than Asahi Intecc. But when comparing it to its historical volatility, General Motors is 13.87 times less risky than Asahi Intecc. It trades about 0.05 of its potential returns per unit of risk. Asahi Intecc Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,780 in Asahi Intecc Co on September 5, 2024 and sell it today you would earn a total of 160.00 from holding Asahi Intecc Co or generate 8.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 77.37% |
| Values | Daily Returns |
General Motors vs. Asahi Intecc Co
Performance |
| Timeline |
| General Motors |
| Asahi Intecc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Asahi Intecc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Asahi Intecc
The main advantage of trading using opposite GM and Asahi Intecc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Asahi Intecc 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 Asahi Intecc will offset losses from the drop in Asahi Intecc's long position.The idea behind General Motors and Asahi Intecc 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.| Asahi Intecc vs. Saia Inc | Asahi Intecc vs. Verra Mobility Corp | Asahi Intecc vs. Mitsubishi UFJ Lease | Asahi Intecc vs. Afya |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |