Correlation Between GM and Grupo Modelo
Can any of the company-specific risk be diversified away by investing in both GM and Grupo Modelo 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 Grupo Modelo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Grupo Modelo SAB, you can compare the effects of market volatilities on GM and Grupo Modelo 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 Grupo Modelo. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Grupo Modelo.
Diversification Opportunities for GM and Grupo Modelo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Grupo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Grupo Modelo SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Modelo SAB 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 Grupo Modelo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Modelo SAB has no effect on the direction of GM i.e., GM and Grupo Modelo go up and down completely randomly.
Pair Corralation between GM and Grupo Modelo
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. Grupo Modelo SAB
Performance |
| Timeline |
| General Motors |
| Grupo Modelo SAB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Grupo Modelo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Grupo Modelo
The main advantage of trading using opposite GM and Grupo Modelo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Grupo Modelo 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 Grupo Modelo will offset losses from the drop in Grupo Modelo's long position.The idea behind General Motors and Grupo Modelo SAB 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.| Grupo Modelo vs. United States Steel | Grupo Modelo vs. CVS Health | Grupo Modelo vs. Monster Beverage Corp | Grupo Modelo vs. Verizon Communications |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |