Correlation Between GM and Apollo Sindoori
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By analyzing existing cross correlation between General Motors and Apollo Sindoori Hotels, you can compare the effects of market volatilities on GM and Apollo Sindoori 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 Apollo Sindoori. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Apollo Sindoori.
Diversification Opportunities for GM and Apollo Sindoori
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between GM and Apollo is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Apollo Sindoori Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Sindoori Hotels 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 Apollo Sindoori. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Sindoori Hotels has no effect on the direction of GM i.e., GM and Apollo Sindoori go up and down completely randomly.
Pair Corralation between GM and Apollo Sindoori
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.93 times more return on investment than Apollo Sindoori. However, General Motors is 1.08 times less risky than Apollo Sindoori. It trades about 0.25 of its potential returns per unit of risk. Apollo Sindoori Hotels is currently generating about -0.01 per unit of risk. If you would invest 5,272 in General Motors on August 25, 2024 and sell it today you would earn a total of 581.00 from holding General Motors or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
General Motors vs. Apollo Sindoori Hotels
Performance |
| Timeline |
| General Motors |
| Apollo Sindoori Hotels |
GM and Apollo Sindoori Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Apollo Sindoori
The main advantage of trading using opposite GM and Apollo Sindoori positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Apollo Sindoori 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 Apollo Sindoori will offset losses from the drop in Apollo Sindoori's long position.The idea behind General Motors and Apollo Sindoori Hotels 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.| Apollo Sindoori vs. Associated Alcohols Breweries | Apollo Sindoori vs. Jindal Poly Investment | Apollo Sindoori vs. Bigbloc Construction Limited | Apollo Sindoori vs. Nalwa Sons Investments |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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