Correlation Between GM and KSM Mutual
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and KSM Mutual Funds, you can compare the effects of market volatilities on GM and KSM Mutual 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 KSM Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and KSM Mutual.
Diversification Opportunities for GM and KSM Mutual
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GM and KSM is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and KSM Mutual Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KSM Mutual Funds 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 KSM Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KSM Mutual Funds has no effect on the direction of GM i.e., GM and KSM Mutual go up and down completely randomly.
Pair Corralation between GM and KSM Mutual
Allowing for the 90-day total investment horizon General Motors is expected to generate 2.28 times more return on investment than KSM Mutual. However, GM is 2.28 times more volatile than KSM Mutual Funds. It trades about 0.13 of its potential returns per unit of risk. KSM Mutual Funds is currently generating about 0.05 per unit of risk. If you would invest 2,879 in General Motors on September 1, 2024 and sell it today you would earn a total of 2,680 from holding General Motors or generate 93.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.7% |
| Values | Daily Returns |
General Motors vs. KSM Mutual Funds
Performance |
| Timeline |
| General Motors |
| KSM Mutual Funds |
GM and KSM Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and KSM Mutual
The main advantage of trading using opposite GM and KSM Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, KSM Mutual 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 KSM Mutual will offset losses from the drop in KSM Mutual's long position.The idea behind General Motors and KSM Mutual Funds 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.| KSM Mutual vs. KSM Mutual Funds | KSM Mutual vs. KSM Mutual Funds | KSM Mutual vs. KSM Mutual Funds | KSM Mutual vs. KSM Mutual Funds |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |