Correlation Between GM and Golden Phoenix
Can any of the company-specific risk be diversified away by investing in both GM and Golden Phoenix 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 Golden Phoenix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Golden Phoenix Minrl, you can compare the effects of market volatilities on GM and Golden Phoenix 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 Golden Phoenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Golden Phoenix.
Diversification Opportunities for GM and Golden Phoenix
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Golden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Golden Phoenix Minrl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Phoenix Minrl 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 Golden Phoenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Phoenix Minrl has no effect on the direction of GM i.e., GM and Golden Phoenix go up and down completely randomly.
Pair Corralation between GM and Golden Phoenix
If you would invest 5,076 in General Motors on September 1, 2024 and sell it today you would earn a total of 483.00 from holding General Motors or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Golden Phoenix Minrl
Performance |
| Timeline |
| General Motors |
| Golden Phoenix Minrl |
GM and Golden Phoenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Golden Phoenix
The main advantage of trading using opposite GM and Golden Phoenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Golden Phoenix 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 Golden Phoenix will offset losses from the drop in Golden Phoenix's long position.The idea behind General Motors and Golden Phoenix Minrl 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.| Golden Phoenix vs. Clifton Mining Co | Golden Phoenix vs. Silver Buckle Mines | Golden Phoenix vs. TVI Pacific | Golden Phoenix vs. Golden Goliath Resources |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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