Correlation Between GM and Avonmore Capital
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By analyzing existing cross correlation between General Motors and Avonmore Capital Management, you can compare the effects of market volatilities on GM and Avonmore Capital 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 Avonmore Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Avonmore Capital.
Diversification Opportunities for GM and Avonmore Capital
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GM and Avonmore is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Avonmore Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avonmore Capital Man 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 Avonmore Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avonmore Capital Man has no effect on the direction of GM i.e., GM and Avonmore Capital go up and down completely randomly.
Pair Corralation between GM and Avonmore Capital
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Avonmore Capital. But the stock apears to be less risky and, when comparing its historical volatility, General Motors is 1.7 times less risky than Avonmore Capital. The stock trades about -0.17 of its potential returns per unit of risk. The Avonmore Capital Management is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,484 in Avonmore Capital Management on November 7, 2024 and sell it today you would lose (61.00) from holding Avonmore Capital Management or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
General Motors vs. Avonmore Capital Management
Performance |
| Timeline |
| General Motors |
| Avonmore Capital Man |
GM and Avonmore Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Avonmore Capital
The main advantage of trading using opposite GM and Avonmore Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Avonmore Capital 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 Avonmore Capital will offset losses from the drop in Avonmore Capital's long position.The idea behind General Motors and Avonmore Capital Management 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.| Avonmore Capital vs. The Byke Hospitality | Avonmore Capital vs. Salzer Electronics Limited | Avonmore Capital vs. Elin Electronics Limited | Avonmore Capital vs. Entero Healthcare Solutions |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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