Correlation Between GM and Kim Vi
Can any of the company-specific risk be diversified away by investing in both GM and Kim Vi 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 Kim Vi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Kim Vi Inox, you can compare the effects of market volatilities on GM and Kim Vi 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 Kim Vi. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Kim Vi.
Diversification Opportunities for GM and Kim Vi
Pay attention - limited upside
The 3 months correlation between GM and Kim is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Kim Vi Inox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kim Vi Inox 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 Kim Vi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kim Vi Inox has no effect on the direction of GM i.e., GM and Kim Vi go up and down completely randomly.
Pair Corralation between GM and Kim Vi
If you would invest 4,539 in General Motors on September 3, 2024 and sell it today you would earn a total of 1,020 from holding General Motors or generate 22.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. Kim Vi Inox
Performance |
| Timeline |
| General Motors |
| Kim Vi Inox |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Kim Vi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Kim Vi
The main advantage of trading using opposite GM and Kim Vi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Kim Vi 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 Kim Vi will offset losses from the drop in Kim Vi's long position.The idea behind General Motors and Kim Vi Inox 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.| Kim Vi vs. Investment and Industrial | Kim Vi vs. Song Hong Aluminum | Kim Vi vs. Pacific Petroleum Transportation | Kim Vi vs. Petrolimex Insurance Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |