Correlation Between GM and Gogoro Equity
Can any of the company-specific risk be diversified away by investing in both GM and Gogoro Equity 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 Gogoro Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Gogoro Equity Warrant, you can compare the effects of market volatilities on GM and Gogoro Equity 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 Gogoro Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Gogoro Equity.
Diversification Opportunities for GM and Gogoro Equity
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GM and Gogoro is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Gogoro Equity Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gogoro Equity Warrant 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 Gogoro Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gogoro Equity Warrant has no effect on the direction of GM i.e., GM and Gogoro Equity go up and down completely randomly.
Pair Corralation between GM and Gogoro Equity
Allowing for the 90-day total investment horizon GM is expected to generate 19.3 times less return on investment than Gogoro Equity. But when comparing it to its historical volatility, General Motors is 22.53 times less risky than Gogoro Equity. It trades about 0.05 of its potential returns per unit of risk. Gogoro Equity Warrant is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 49.00 in Gogoro Equity Warrant on September 2, 2024 and sell it today you would lose (46.97) from holding Gogoro Equity Warrant or give up 95.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.38% |
| Values | Daily Returns |
General Motors vs. Gogoro Equity Warrant
Performance |
| Timeline |
| General Motors |
| Gogoro Equity Warrant |
GM and Gogoro Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Gogoro Equity
The main advantage of trading using opposite GM and Gogoro Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Gogoro Equity 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 Gogoro Equity will offset losses from the drop in Gogoro Equity's long position.The idea behind General Motors and Gogoro Equity Warrant 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.| Gogoro Equity vs. Stryve Foods | Gogoro Equity vs. TC BioPharm Holdings | Gogoro Equity vs. Voxtur Analytics Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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