Correlation Between GM and KENGEN PLC
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By analyzing existing cross correlation between General Motors and KENGEN PLC, you can compare the effects of market volatilities on GM and KENGEN PLC 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 KENGEN PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and KENGEN PLC.
Diversification Opportunities for GM and KENGEN PLC
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between GM and KENGEN is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and KENGEN PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KENGEN PLC 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 KENGEN PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KENGEN PLC has no effect on the direction of GM i.e., GM and KENGEN PLC go up and down completely randomly.
Pair Corralation between GM and KENGEN PLC
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the KENGEN PLC. In addition to that, GM is 1.25 times more volatile than KENGEN PLC. It trades about -0.05 of its total potential returns per unit of risk. KENGEN PLC is currently generating about 0.24 per unit of volatility. If you would invest 375.00 in KENGEN PLC on November 3, 2024 and sell it today you would earn a total of 46.00 from holding KENGEN PLC or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
General Motors vs. KENGEN PLC
Performance |
| Timeline |
| General Motors |
| KENGEN PLC |
GM and KENGEN PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and KENGEN PLC
The main advantage of trading using opposite GM and KENGEN PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, KENGEN PLC 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 KENGEN PLC will offset losses from the drop in KENGEN PLC's long position.The idea behind General Motors and KENGEN PLC 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.| KENGEN PLC vs. HOME AFRIKA LTD | KENGEN PLC vs. CENTUM INVESTMENT PANY | KENGEN PLC vs. HOMEBOYZ ENTERTAINMENT PLC | KENGEN PLC vs. ABSA BANK OF |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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