Correlation Between GM and First Trustaberdeen
Can any of the company-specific risk be diversified away by investing in both GM and First Trustaberdeen 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 First Trustaberdeen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and First Trustaberdeen Emerging, you can compare the effects of market volatilities on GM and First Trustaberdeen 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 First Trustaberdeen. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and First Trustaberdeen.
Diversification Opportunities for GM and First Trustaberdeen
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and First Trustaberdeen Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trustaberdeen 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 First Trustaberdeen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trustaberdeen has no effect on the direction of GM i.e., GM and First Trustaberdeen go up and down completely randomly.
Pair Corralation between GM and First Trustaberdeen
If you would invest 4,551 in General Motors on August 30, 2024 and sell it today you would earn a total of 999.00 from holding General Motors or generate 21.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. First Trustaberdeen Emerging
Performance |
| Timeline |
| General Motors |
| First Trustaberdeen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and First Trustaberdeen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and First Trustaberdeen
The main advantage of trading using opposite GM and First Trustaberdeen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, First Trustaberdeen 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 First Trustaberdeen will offset losses from the drop in First Trustaberdeen's long position.The idea behind General Motors and First Trustaberdeen Emerging 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.| First Trustaberdeen vs. Angel Oak Financial | First Trustaberdeen vs. Nebraska Municipal Fund | First Trustaberdeen vs. Barings Active Short | First Trustaberdeen vs. T Rowe Price |
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.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |