Correlation Between GM and Braxia Scientific
Can any of the company-specific risk be diversified away by investing in both GM and Braxia Scientific 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 Braxia Scientific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Braxia Scientific Corp, you can compare the effects of market volatilities on GM and Braxia Scientific 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 Braxia Scientific. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Braxia Scientific.
Diversification Opportunities for GM and Braxia Scientific
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GM and Braxia is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Braxia Scientific Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braxia Scientific Corp 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 Braxia Scientific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Braxia Scientific Corp has no effect on the direction of GM i.e., GM and Braxia Scientific go up and down completely randomly.
Pair Corralation between GM and Braxia Scientific
Allowing for the 90-day total investment horizon GM is expected to generate 11.43 times less return on investment than Braxia Scientific. But when comparing it to its historical volatility, General Motors is 4.24 times less risky than Braxia Scientific. It trades about 0.07 of its potential returns per unit of risk. Braxia Scientific Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 0.27 in Braxia Scientific Corp on August 29, 2024 and sell it today you would earn a total of 0.13 from holding Braxia Scientific Corp or generate 48.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Braxia Scientific Corp
Performance |
| Timeline |
| General Motors |
| Braxia Scientific Corp |
GM and Braxia Scientific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Braxia Scientific
The main advantage of trading using opposite GM and Braxia Scientific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Braxia Scientific 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 Braxia Scientific will offset losses from the drop in Braxia Scientific's long position.The idea behind General Motors and Braxia Scientific Corp 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.| Braxia Scientific vs. Cybin Inc | Braxia Scientific vs. ATAI Life Sciences | Braxia Scientific vs. Mind Medicine | Braxia Scientific vs. Oxford Nanopore Technologies |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |