Correlation Between GM and Nxtdigital
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By analyzing existing cross correlation between General Motors and Nxtdigital Limited, you can compare the effects of market volatilities on GM and Nxtdigital 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 Nxtdigital. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Nxtdigital.
Diversification Opportunities for GM and Nxtdigital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Nxtdigital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Nxtdigital Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nxtdigital Limited 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 Nxtdigital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nxtdigital Limited has no effect on the direction of GM i.e., GM and Nxtdigital go up and down completely randomly.
Pair Corralation between GM and Nxtdigital
If you would invest 4,829 in General Motors on September 2, 2024 and sell it today you would earn a total of 730.00 from holding General Motors or generate 15.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. Nxtdigital Limited
Performance |
| Timeline |
| General Motors |
| Nxtdigital Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Nxtdigital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Nxtdigital
The main advantage of trading using opposite GM and Nxtdigital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Nxtdigital 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 Nxtdigital will offset losses from the drop in Nxtdigital's long position.The idea behind General Motors and Nxtdigital Limited 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.| Nxtdigital vs. Vidhi Specialty Food | Nxtdigital vs. Foods Inns Limited | Nxtdigital vs. Kohinoor Foods Limited | Nxtdigital vs. Computer Age Management |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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