Correlation Between GM and AksharChem India
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and AksharChem India Limited, you can compare the effects of market volatilities on GM and AksharChem India 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 AksharChem India. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and AksharChem India.
Diversification Opportunities for GM and AksharChem India
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GM and AksharChem is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and AksharChem India Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AksharChem India 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 AksharChem India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AksharChem India has no effect on the direction of GM i.e., GM and AksharChem India go up and down completely randomly.
Pair Corralation between GM and AksharChem India
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.38 times more return on investment than AksharChem India. However, GM is 1.38 times more volatile than AksharChem India Limited. It trades about 0.2 of its potential returns per unit of risk. AksharChem India Limited is currently generating about -0.06 per unit of risk. If you would invest 4,484 in General Motors on August 31, 2024 and sell it today you would earn a total of 1,066 from holding General Motors or generate 23.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
General Motors vs. AksharChem India Limited
Performance |
| Timeline |
| General Motors |
| AksharChem India |
GM and AksharChem India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and AksharChem India
The main advantage of trading using opposite GM and AksharChem India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, AksharChem India 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 AksharChem India will offset losses from the drop in AksharChem India's long position.The idea behind General Motors and AksharChem India Limited 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.| AksharChem India vs. Sudarshan Chemical Industries | AksharChem India vs. Apex Frozen Foods | AksharChem India vs. Sukhjit Starch Chemicals | AksharChem India vs. LT Foods Limited |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |