Correlation Between GM and ANGLE Plc
Can any of the company-specific risk be diversified away by investing in both GM and ANGLE Plc 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 ANGLE Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and ANGLE plc, you can compare the effects of market volatilities on GM and ANGLE Plc 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 ANGLE Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and ANGLE Plc.
Diversification Opportunities for GM and ANGLE Plc
Pay attention - limited upside
The 3 months correlation between GM and ANGLE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and ANGLE plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLE plc 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 ANGLE Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLE plc has no effect on the direction of GM i.e., GM and ANGLE Plc go up and down completely randomly.
Pair Corralation between GM and ANGLE Plc
Allowing for the 90-day total investment horizon GM is expected to generate 1.12 times less return on investment than ANGLE Plc. But when comparing it to its historical volatility, General Motors is 4.38 times less risky than ANGLE Plc. It trades about 0.11 of its potential returns per unit of risk. ANGLE plc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 15.00 in ANGLE plc on August 29, 2024 and sell it today you would earn a total of 1.00 from holding ANGLE plc or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. ANGLE plc
Performance |
| Timeline |
| General Motors |
| ANGLE plc |
GM and ANGLE Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and ANGLE Plc
The main advantage of trading using opposite GM and ANGLE Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, ANGLE Plc 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 ANGLE Plc will offset losses from the drop in ANGLE Plc's long position.The idea behind General Motors and ANGLE plc 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.| ANGLE Plc vs. Burning Rock Biotech | ANGLE Plc vs. Biodesix | ANGLE Plc vs. Exagen Inc | ANGLE Plc vs. Volitionrx |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |