Correlation Between GM and BLUERUSH Media
Can any of the company-specific risk be diversified away by investing in both GM and BLUERUSH Media 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 BLUERUSH Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and BLUERUSH Media Group, you can compare the effects of market volatilities on GM and BLUERUSH Media 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 BLUERUSH Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and BLUERUSH Media.
Diversification Opportunities for GM and BLUERUSH Media
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GM and BLUERUSH is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and BLUERUSH Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLUERUSH Media Group 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 BLUERUSH Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLUERUSH Media Group has no effect on the direction of GM i.e., GM and BLUERUSH Media go up and down completely randomly.
Pair Corralation between GM and BLUERUSH Media
If you would invest 5,273 in General Motors on August 27, 2024 and sell it today you would earn a total of 580.00 from holding General Motors or generate 11.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. BLUERUSH Media Group
Performance |
| Timeline |
| General Motors |
| BLUERUSH Media Group |
GM and BLUERUSH Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and BLUERUSH Media
The main advantage of trading using opposite GM and BLUERUSH Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, BLUERUSH Media 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 BLUERUSH Media will offset losses from the drop in BLUERUSH Media's long position.The idea behind General Motors and BLUERUSH Media Group 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.| BLUERUSH Media vs. Slate Grocery REIT | BLUERUSH Media vs. Roots Corp | BLUERUSH Media vs. Aimia Inc | BLUERUSH Media vs. Tucows Inc |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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