Correlation Between GM and KIM GROWTH
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By analyzing existing cross correlation between General Motors and KIM GROWTH VN, you can compare the effects of market volatilities on GM and KIM GROWTH 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 KIM GROWTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and KIM GROWTH.
Diversification Opportunities for GM and KIM GROWTH
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between GM and KIM is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and KIM GROWTH VN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIM GROWTH VN 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 KIM GROWTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIM GROWTH VN has no effect on the direction of GM i.e., GM and KIM GROWTH go up and down completely randomly.
Pair Corralation between GM and KIM GROWTH
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.73 times more return on investment than KIM GROWTH. However, GM is 1.73 times more volatile than KIM GROWTH VN. It trades about 0.04 of its potential returns per unit of risk. KIM GROWTH VN is currently generating about 0.06 per unit of risk. If you would invest 4,086 in General Motors on September 1, 2024 and sell it today you would earn a total of 1,473 from holding General Motors or generate 36.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 23.3% |
| Values | Daily Returns |
General Motors vs. KIM GROWTH VN
Performance |
| Timeline |
| General Motors |
| KIM GROWTH VN |
GM and KIM GROWTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and KIM GROWTH
The main advantage of trading using opposite GM and KIM GROWTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, KIM GROWTH 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 KIM GROWTH will offset losses from the drop in KIM GROWTH's long position.The idea behind General Motors and KIM GROWTH VN 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.| KIM GROWTH vs. KIM GROWTH VN30 | KIM GROWTH vs. FPT CAPITAL VNX50 | KIM GROWTH vs. VINACAPITAL VN100 ETF | KIM GROWTH vs. SSIAM VN30 ETF |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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