Correlation Between GM and SPASX 300
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and SPASX 300 Media, you can compare the effects of market volatilities on GM and SPASX 300 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 SPASX 300. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and SPASX 300.
Diversification Opportunities for GM and SPASX 300
Good diversification
The 3 months correlation between GM and SPASX is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and SPASX 300 Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPASX 300 Media 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 SPASX 300. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPASX 300 Media has no effect on the direction of GM i.e., GM and SPASX 300 go up and down completely randomly.
Pair Corralation between GM and SPASX 300
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.81 times more return on investment than SPASX 300. However, GM is 1.81 times more volatile than SPASX 300 Media. It trades about 0.04 of its potential returns per unit of risk. SPASX 300 Media is currently generating about 0.07 per unit of risk. If you would invest 3,370 in General Motors on December 4, 2024 and sell it today you would earn a total of 1,212 from holding General Motors or generate 35.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.0% |
| Values | Daily Returns |
General Motors vs. SPASX 300 Media
Performance |
| Timeline |
GM and SPASX 300 Volatility Contrast
Predicted Return Density |
| Returns |
General Motors
Pair trading matchups for GM
SPASX 300 Media
Pair trading matchups for SPASX 300
Pair Trading with GM and SPASX 300
The main advantage of trading using opposite GM and SPASX 300 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, SPASX 300 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 SPASX 300 will offset losses from the drop in SPASX 300's long position.The idea behind General Motors and SPASX 300 Media 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.| SPASX 300 vs. Prime Financial Group | SPASX 300 vs. Computershare | SPASX 300 vs. Liberty Financial Group | SPASX 300 vs. Navigator Global 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Correlations Find global opportunities by holding instruments from different markets |