Correlation Between GM and Consorcio Alfa
Can any of the company-specific risk be diversified away by investing in both GM and Consorcio Alfa 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 Consorcio Alfa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Consorcio Alfa De, you can compare the effects of market volatilities on GM and Consorcio Alfa 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 Consorcio Alfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Consorcio Alfa.
Diversification Opportunities for GM and Consorcio Alfa
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Consorcio is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Consorcio Alfa De in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consorcio Alfa De 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 Consorcio Alfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consorcio Alfa De has no effect on the direction of GM i.e., GM and Consorcio Alfa go up and down completely randomly.
Pair Corralation between GM and Consorcio Alfa
If you would invest 4,539 in General Motors on September 3, 2024 and sell it today you would earn a total of 1,020 from holding General Motors or generate 22.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. Consorcio Alfa De
Performance |
| Timeline |
| General Motors |
| Consorcio Alfa De |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Consorcio Alfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Consorcio Alfa
The main advantage of trading using opposite GM and Consorcio Alfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Consorcio Alfa 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 Consorcio Alfa will offset losses from the drop in Consorcio Alfa's long position.The idea behind General Motors and Consorcio Alfa De 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.| Consorcio Alfa vs. Electronic Arts | Consorcio Alfa vs. Multilaser Industrial SA | Consorcio Alfa vs. Align Technology | Consorcio Alfa vs. Tyson Foods |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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