Correlation Between GM and Code Rebel
Can any of the company-specific risk be diversified away by investing in both GM and Code Rebel 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 Code Rebel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Code Rebel Corp, you can compare the effects of market volatilities on GM and Code Rebel 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 Code Rebel. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Code Rebel.
Diversification Opportunities for GM and Code Rebel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Code is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Code Rebel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Code Rebel 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 Code Rebel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Code Rebel Corp has no effect on the direction of GM i.e., GM and Code Rebel go up and down completely randomly.
Pair Corralation between GM and Code Rebel
If you would invest 5,197 in General Motors on August 31, 2024 and sell it today you would earn a total of 362.00 from holding General Motors or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
General Motors vs. Code Rebel Corp
Performance |
| Timeline |
| General Motors |
| Code Rebel Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Code Rebel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Code Rebel
The main advantage of trading using opposite GM and Code Rebel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Code Rebel 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 Code Rebel will offset losses from the drop in Code Rebel's long position.The idea behind General Motors and Code Rebel 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.| Code Rebel vs. Enfusion | Code Rebel vs. Olo Inc | Code Rebel vs. Infobird Co | Code Rebel vs. HeartCore Enterprises |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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