Correlation Between GM and IA Invest
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By analyzing existing cross correlation between General Motors and IA Invest Advice, you can compare the effects of market volatilities on GM and IA Invest 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 IA Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and IA Invest.
Diversification Opportunities for GM and IA Invest
Poor diversification
The 3 months correlation between GM and IAIACVF is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and IA Invest Advice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IA Invest Advice 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 IA Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IA Invest Advice has no effect on the direction of GM i.e., GM and IA Invest go up and down completely randomly.
Pair Corralation between GM and IA Invest
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the IA Invest. In addition to that, GM is 3.57 times more volatile than IA Invest Advice. It trades about -0.19 of its total potential returns per unit of risk. IA Invest Advice is currently generating about 0.03 per unit of volatility. If you would invest 13,913 in IA Invest Advice on September 19, 2024 and sell it today you would earn a total of 55.00 from holding IA Invest Advice or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
General Motors vs. IA Invest Advice
Performance |
| Timeline |
| General Motors |
| IA Invest Advice |
GM and IA Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and IA Invest
The main advantage of trading using opposite GM and IA Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, IA Invest 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 IA Invest will offset losses from the drop in IA Invest's long position.The idea behind General Motors and IA Invest Advice 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.| IA Invest vs. BankIn Bredygt Klimaakt | IA Invest vs. Jyske Bank AS | IA Invest vs. Scandinavian Medical Solutions | IA Invest vs. Kreditbanken AS |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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