Correlation Between GM and Culpeo Minerals
Can any of the company-specific risk be diversified away by investing in both GM and Culpeo 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 Culpeo 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 Culpeo Minerals Limited, you can compare the effects of market volatilities on GM and Culpeo 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 Culpeo Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Culpeo Minerals.
Diversification Opportunities for GM and Culpeo Minerals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Culpeo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Culpeo Minerals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Culpeo Minerals 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 Culpeo Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Culpeo Minerals has no effect on the direction of GM i.e., GM and Culpeo Minerals go up and down completely randomly.
Pair Corralation between GM and Culpeo Minerals
If you would invest 4,602 in General Motors on September 12, 2024 and sell it today you would earn a total of 672.00 from holding General Motors or generate 14.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
General Motors vs. Culpeo Minerals Limited
Performance |
| Timeline |
| General Motors |
| Culpeo Minerals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Culpeo Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Culpeo Minerals
The main advantage of trading using opposite GM and Culpeo Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Culpeo 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 Culpeo Minerals will offset losses from the drop in Culpeo Minerals' long position.The idea behind General Motors and Culpeo Minerals Limited 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.| Culpeo Minerals vs. Dor Copper Mining | Culpeo Minerals vs. Three Valley Copper | Culpeo Minerals vs. World Copper | Culpeo Minerals vs. Amerigo Resources |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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