Correlation Between GM and Handelsinvest Offensiv
Can any of the company-specific risk be diversified away by investing in both GM and Handelsinvest Offensiv 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 Handelsinvest Offensiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Handelsinvest Offensiv 60, you can compare the effects of market volatilities on GM and Handelsinvest Offensiv 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 Handelsinvest Offensiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Handelsinvest Offensiv.
Diversification Opportunities for GM and Handelsinvest Offensiv
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Handelsinvest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Handelsinvest Offensiv 60 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Handelsinvest Offensiv 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 Handelsinvest Offensiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Handelsinvest Offensiv has no effect on the direction of GM i.e., GM and Handelsinvest Offensiv go up and down completely randomly.
Pair Corralation between GM and Handelsinvest Offensiv
If you would invest 3,906 in General Motors on December 2, 2024 and sell it today you would earn a total of 1,007 from holding General Motors or generate 25.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. Handelsinvest Offensiv 60
Performance |
| Timeline |
| General Motors |
| Handelsinvest Offensiv |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
GM and Handelsinvest Offensiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Handelsinvest Offensiv
The main advantage of trading using opposite GM and Handelsinvest Offensiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Handelsinvest Offensiv 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 Handelsinvest Offensiv will offset losses from the drop in Handelsinvest Offensiv's long position.The idea behind General Motors and Handelsinvest Offensiv 60 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.| Handelsinvest Offensiv vs. Nordinvestments AS | Handelsinvest Offensiv vs. Carnegie Wealth Management | Handelsinvest Offensiv vs. Djurslands Bank | Handelsinvest Offensiv vs. Nordea Bank Abp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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