Correlation Between GM and Mojo Data
Can any of the company-specific risk be diversified away by investing in both GM and Mojo Data 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 Mojo Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Mojo Data Solutions, you can compare the effects of market volatilities on GM and Mojo Data 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 Mojo Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Mojo Data.
Diversification Opportunities for GM and Mojo Data
Pay attention - limited upside
The 3 months correlation between GM and Mojo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Mojo Data Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mojo Data Solutions 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 Mojo Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mojo Data Solutions has no effect on the direction of GM i.e., GM and Mojo Data go up and down completely randomly.
Pair Corralation between GM and Mojo Data
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.08 times more return on investment than Mojo Data. However, GM is 1.08 times more volatile than Mojo Data Solutions. It trades about 0.09 of its potential returns per unit of risk. Mojo Data Solutions is currently generating about 0.01 per unit of risk. If you would invest 3,508 in General Motors on September 12, 2024 and sell it today you would earn a total of 1,696 from holding General Motors or generate 48.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Mojo Data Solutions
Performance |
| Timeline |
| General Motors |
| Mojo Data Solutions |
GM and Mojo Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Mojo Data
The main advantage of trading using opposite GM and Mojo Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Mojo Data 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 Mojo Data will offset losses from the drop in Mojo Data's long position.The idea behind General Motors and Mojo Data Solutions 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.| Mojo Data vs. UBI Blockchain Internet | Mojo Data vs. TrackX Holdings | Mojo Data vs. Maptelligent | Mojo Data vs. Obocon Inc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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