Correlation Between GM and Cordoba Minerals
Can any of the company-specific risk be diversified away by investing in both GM and Cordoba Minerals 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 Cordoba Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Cordoba Minerals Corp, you can compare the effects of market volatilities on GM and Cordoba Minerals 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 Cordoba Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Cordoba Minerals.
Diversification Opportunities for GM and Cordoba Minerals
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GM and Cordoba is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Cordoba Minerals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cordoba Minerals 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 Cordoba Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cordoba Minerals Corp has no effect on the direction of GM i.e., GM and Cordoba Minerals go up and down completely randomly.
Pair Corralation between GM and Cordoba Minerals
Allowing for the 90-day total investment horizon GM is expected to generate 1.17 times less return on investment than Cordoba Minerals. But when comparing it to its historical volatility, General Motors is 2.28 times less risky than Cordoba Minerals. It trades about 0.11 of its potential returns per unit of risk. Cordoba Minerals Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 29.00 in Cordoba Minerals Corp on September 4, 2024 and sell it today you would earn a total of 14.00 from holding Cordoba Minerals Corp or generate 48.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
General Motors vs. Cordoba Minerals Corp
Performance |
| Timeline |
| General Motors |
| Cordoba Minerals Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Cordoba Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Cordoba Minerals
The main advantage of trading using opposite GM and Cordoba Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Cordoba Minerals 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 Cordoba Minerals will offset losses from the drop in Cordoba Minerals' long position.The idea behind General Motors and Cordoba Minerals 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.| Cordoba Minerals vs. Hannan Metals | Cordoba Minerals vs. Atico Mining | Cordoba Minerals vs. Midnight Sun Mining |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |