Correlation Between GM and Asgaard Group
Can any of the company-specific risk be diversified away by investing in both GM and Asgaard Group 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 Asgaard Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Asgaard Group As, you can compare the effects of market volatilities on GM and Asgaard Group 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 Asgaard Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Asgaard Group.
Diversification Opportunities for GM and Asgaard Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Asgaard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Asgaard Group As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asgaard Group As 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 Asgaard Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asgaard Group As has no effect on the direction of GM i.e., GM and Asgaard Group go up and down completely randomly.
Pair Corralation between GM and Asgaard Group
If you would invest 5,273 in General Motors on August 29, 2024 and sell it today you would earn a total of 206.00 from holding General Motors or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. Asgaard Group As
Performance |
| Timeline |
| General Motors |
| Asgaard Group As |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Asgaard Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Asgaard Group
The main advantage of trading using opposite GM and Asgaard Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Asgaard Group 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 Asgaard Group will offset losses from the drop in Asgaard Group's long position.The idea behind General Motors and Asgaard Group As 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.| Asgaard Group vs. Carnegie Wealth Management | Asgaard Group vs. Groenlandsbanken AS | Asgaard Group vs. BankIn Bredygt Klimaakt | Asgaard Group vs. Danske Andelskassers Bank |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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