Correlation Between GM and SSIAM VN30
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By analyzing existing cross correlation between General Motors and SSIAM VN30 ETF, you can compare the effects of market volatilities on GM and SSIAM VN30 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 SSIAM VN30. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and SSIAM VN30.
Diversification Opportunities for GM and SSIAM VN30
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GM and SSIAM is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and SSIAM VN30 ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSIAM VN30 ETF 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 SSIAM VN30. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSIAM VN30 ETF has no effect on the direction of GM i.e., GM and SSIAM VN30 go up and down completely randomly.
Pair Corralation between GM and SSIAM VN30
Allowing for the 90-day total investment horizon General Motors is expected to generate 3.32 times more return on investment than SSIAM VN30. However, GM is 3.32 times more volatile than SSIAM VN30 ETF. It trades about 0.14 of its potential returns per unit of risk. SSIAM VN30 ETF is currently generating about -0.04 per unit of risk. If you would invest 5,180 in General Motors on September 3, 2024 and sell it today you would earn a total of 379.00 from holding General Motors or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
General Motors vs. SSIAM VN30 ETF
Performance |
| Timeline |
| General Motors |
| SSIAM VN30 ETF |
GM and SSIAM VN30 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and SSIAM VN30
The main advantage of trading using opposite GM and SSIAM VN30 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, SSIAM VN30 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 SSIAM VN30 will offset losses from the drop in SSIAM VN30's long position.The idea behind General Motors and SSIAM VN30 ETF 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.| SSIAM VN30 vs. Idico JSC | SSIAM VN30 vs. Song Hong Garment | SSIAM VN30 vs. Alphanam ME | SSIAM VN30 vs. Hochiminh City Metal |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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