Correlation Between GM and VINACAPITAL VN100
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By analyzing existing cross correlation between General Motors and VINACAPITAL VN100 ETF, you can compare the effects of market volatilities on GM and VINACAPITAL VN100 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 VINACAPITAL VN100. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and VINACAPITAL VN100.
Diversification Opportunities for GM and VINACAPITAL VN100
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GM and VINACAPITAL is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and VINACAPITAL VN100 ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VINACAPITAL VN100 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 VINACAPITAL VN100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VINACAPITAL VN100 ETF has no effect on the direction of GM i.e., GM and VINACAPITAL VN100 go up and down completely randomly.
Pair Corralation between GM and VINACAPITAL VN100
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the VINACAPITAL VN100. In addition to that, GM is 5.01 times more volatile than VINACAPITAL VN100 ETF. It trades about -0.1 of its total potential returns per unit of risk. VINACAPITAL VN100 ETF is currently generating about 0.48 per unit of volatility. If you would invest 1,762,000 in VINACAPITAL VN100 ETF on December 4, 2024 and sell it today you would earn a total of 70,000 from holding VINACAPITAL VN100 ETF or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. VINACAPITAL VN100 ETF
Performance |
| Timeline |
| General Motors |
| VINACAPITAL VN100 ETF |
GM and VINACAPITAL VN100 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and VINACAPITAL VN100
The main advantage of trading using opposite GM and VINACAPITAL VN100 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, VINACAPITAL VN100 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 VINACAPITAL VN100 will offset losses from the drop in VINACAPITAL VN100's long position.The idea behind General Motors and VINACAPITAL VN100 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.| VINACAPITAL VN100 vs. KIM GROWTH VN30 | VINACAPITAL VN100 vs. FPT CAPITAL VNX50 | VINACAPITAL VN100 vs. SSIAM VN30 ETF | VINACAPITAL VN100 vs. SSIAM VNFIN LEAD |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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