Correlation Between GM and EureKING
Can any of the company-specific risk be diversified away by investing in both GM and EureKING 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 EureKING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and EureKING SA, you can compare the effects of market volatilities on GM and EureKING 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 EureKING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and EureKING.
Diversification Opportunities for GM and EureKING
Pay attention - limited upside
The 3 months correlation between GM and EureKING is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and EureKING SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EureKING SA 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 EureKING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EureKING SA has no effect on the direction of GM i.e., GM and EureKING go up and down completely randomly.
Pair Corralation between GM and EureKING
If you would invest 4,536 in General Motors on September 25, 2024 and sell it today you would earn a total of 810.50 from holding General Motors or generate 17.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. EureKING SA
Performance |
| Timeline |
| General Motors |
| EureKING SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and EureKING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and EureKING
The main advantage of trading using opposite GM and EureKING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, EureKING 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 EureKING will offset losses from the drop in EureKING's long position.The idea behind General Motors and EureKING SA 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.| EureKING vs. Jacquet Metal Service | EureKING vs. Veolia Environnement VE | EureKING vs. Avenir Telecom SA | EureKING vs. Kaufman Et Broad |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |