Correlation Between GM and FIBRA Macquarie
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By analyzing existing cross correlation between General Motors and FIBRA Macquarie Mxico, you can compare the effects of market volatilities on GM and FIBRA Macquarie 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 FIBRA Macquarie. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and FIBRA Macquarie.
Diversification Opportunities for GM and FIBRA Macquarie
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GM and FIBRA is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and FIBRA Macquarie Mxico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIBRA Macquarie Mxico 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 FIBRA Macquarie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIBRA Macquarie Mxico has no effect on the direction of GM i.e., GM and FIBRA Macquarie go up and down completely randomly.
Pair Corralation between GM and FIBRA Macquarie
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.52 times more return on investment than FIBRA Macquarie. However, GM is 1.52 times more volatile than FIBRA Macquarie Mxico. It trades about 0.08 of its potential returns per unit of risk. FIBRA Macquarie Mxico is currently generating about 0.07 per unit of risk. 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 | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. FIBRA Macquarie Mxico
Performance |
| Timeline |
| General Motors |
| FIBRA Macquarie Mxico |
GM and FIBRA Macquarie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and FIBRA Macquarie
The main advantage of trading using opposite GM and FIBRA Macquarie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, FIBRA Macquarie 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 FIBRA Macquarie will offset losses from the drop in FIBRA Macquarie's long position.The idea behind General Motors and FIBRA Macquarie Mxico 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.| FIBRA Macquarie vs. FIBRA Prologis | FIBRA Macquarie vs. Fibra UNO | FIBRA Macquarie vs. Fibra Danhos | FIBRA Macquarie vs. Fibra Terrafina |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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