Correlation Between GM and Sociedad
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By analyzing existing cross correlation between General Motors and Sociedad De Inversiones, you can compare the effects of market volatilities on GM and Sociedad 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 Sociedad. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Sociedad.
Diversification Opportunities for GM and Sociedad
Pay attention - limited upside
The 3 months correlation between GM and Sociedad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Sociedad De Inversiones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sociedad De Inversiones 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 Sociedad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sociedad De Inversiones has no effect on the direction of GM i.e., GM and Sociedad go up and down completely randomly.
Pair Corralation between GM and Sociedad
If you would invest 3,536 in General Motors on August 31, 2024 and sell it today you would earn a total of 2,023 from holding General Motors or generate 57.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. Sociedad De Inversiones
Performance |
| Timeline |
| General Motors |
| Sociedad De Inversiones |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Sociedad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Sociedad
The main advantage of trading using opposite GM and Sociedad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Sociedad 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 Sociedad will offset losses from the drop in Sociedad's long position.The idea behind General Motors and Sociedad De Inversiones 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.| Sociedad vs. Sociedad Matriz SAAM | Sociedad vs. Sociedad Qumica y | Sociedad vs. Sociedad Qumica y | Sociedad vs. Sociedad Punta del |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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