Correlation Between GM and Ayima Group
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and Ayima Group AB, you can compare the effects of market volatilities on GM and Ayima 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 Ayima Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Ayima Group.
Diversification Opportunities for GM and Ayima Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Ayima is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Ayima Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ayima Group AB 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 Ayima Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ayima Group AB has no effect on the direction of GM i.e., GM and Ayima Group go up and down completely randomly.
Pair Corralation between GM and Ayima Group
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.7 times more return on investment than Ayima Group. However, General Motors is 1.43 times less risky than Ayima Group. It trades about 0.08 of its potential returns per unit of risk. Ayima Group AB is currently generating about 0.01 per unit of risk. If you would invest 4,483 in General Motors on September 3, 2024 and sell it today you would earn a total of 1,076 from holding General Motors or generate 24.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.65% |
| Values | Daily Returns |
General Motors vs. Ayima Group AB
Performance |
| Timeline |
| General Motors |
| Ayima Group AB |
GM and Ayima Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Ayima Group
The main advantage of trading using opposite GM and Ayima Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Ayima 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 Ayima Group will offset losses from the drop in Ayima Group's long position.The idea behind General Motors and Ayima Group AB 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.| Ayima Group vs. Absolent Group AB | Ayima Group vs. Adventure Box Technology | Ayima Group vs. Enorama Pharma AB | Ayima Group vs. ALM Equity AB |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |