Correlation Between GM and MCX ICOMDEX
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and MCX ICOMDEX ALUMINIUM, you can compare the effects of market volatilities on GM and MCX ICOMDEX 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 MCX ICOMDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and MCX ICOMDEX.
Diversification Opportunities for GM and MCX ICOMDEX
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GM and MCX is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and MCX ICOMDEX ALUMINIUM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCX ICOMDEX ALUMINIUM 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 MCX ICOMDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCX ICOMDEX ALUMINIUM has no effect on the direction of GM i.e., GM and MCX ICOMDEX go up and down completely randomly.
Pair Corralation between GM and MCX ICOMDEX
Allowing for the 90-day total investment horizon General Motors is expected to generate 2.17 times more return on investment than MCX ICOMDEX. However, GM is 2.17 times more volatile than MCX ICOMDEX ALUMINIUM. It trades about 0.08 of its potential returns per unit of risk. MCX ICOMDEX ALUMINIUM is currently generating about 0.06 per unit of risk. If you would invest 4,935 in General Motors on August 29, 2024 and sell it today you would earn a total of 544.00 from holding General Motors or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 71.88% |
| Values | Daily Returns |
General Motors vs. MCX ICOMDEX ALUMINIUM
Performance |
| Timeline |
GM and MCX ICOMDEX Volatility Contrast
Predicted Return Density |
| Returns |
General Motors
Pair trading matchups for GM
MCX ICOMDEX ALUMINIUM
Pair trading matchups for MCX ICOMDEX
Pair Trading with GM and MCX ICOMDEX
The main advantage of trading using opposite GM and MCX ICOMDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, MCX ICOMDEX 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 MCX ICOMDEX will offset losses from the drop in MCX ICOMDEX's long position.The idea behind General Motors and MCX ICOMDEX ALUMINIUM 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.| MCX ICOMDEX vs. Prakash Steelage Limited | MCX ICOMDEX vs. MSP Steel Power | MCX ICOMDEX vs. Steelcast Limited | MCX ICOMDEX vs. SAL Steel Limited |
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
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| 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 | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |