Correlation Between GM and Immunovia Publ
Can any of the company-specific risk be diversified away by investing in both GM and Immunovia Publ 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 Immunovia Publ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Immunovia publ AB, you can compare the effects of market volatilities on GM and Immunovia Publ 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 Immunovia Publ. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Immunovia Publ.
Diversification Opportunities for GM and Immunovia Publ
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GM and Immunovia is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Immunovia publ AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunovia publ AB 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 Immunovia Publ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunovia publ AB has no effect on the direction of GM i.e., GM and Immunovia Publ go up and down completely randomly.
Pair Corralation between GM and Immunovia Publ
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.14 times more return on investment than Immunovia Publ. However, General Motors is 7.02 times less risky than Immunovia Publ. It trades about 0.05 of its potential returns per unit of risk. Immunovia publ AB is currently generating about 0.0 per unit of risk. If you would invest 3,749 in General Motors on August 29, 2024 and sell it today you would earn a total of 1,730 from holding General Motors or generate 46.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
General Motors vs. Immunovia publ AB
Performance |
| Timeline |
| General Motors |
| Immunovia publ AB |
GM and Immunovia Publ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Immunovia Publ
The main advantage of trading using opposite GM and Immunovia Publ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Immunovia Publ 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 Immunovia Publ will offset losses from the drop in Immunovia Publ's long position.The idea behind General Motors and Immunovia publ AB 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.| Immunovia Publ vs. ADDvise Group B | Immunovia Publ vs. Hanza AB | Immunovia Publ vs. Awardit AB | Immunovia Publ vs. Doxa AB |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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