Correlation Between GM and Mold Tek

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both GM and Mold Tek 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 Mold Tek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Mold Tek Packaging Limited, you can compare the effects of market volatilities on GM and Mold Tek 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 Mold Tek. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Mold Tek.

Diversification Opportunities for GM and Mold Tek

-0.79
  Correlation Coefficient
 GM

Pay attention - limited upside

The 3 months correlation between GM and Mold is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Mold Tek Packaging Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mold Tek Packaging 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 Mold Tek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mold Tek Packaging has no effect on the direction of GM i.e., GM and Mold Tek go up and down completely randomly.

Pair Corralation between GM and Mold Tek

Allowing for the 90-day total investment horizon General Motors is expected to generate 1.83 times more return on investment than Mold Tek. However, GM is 1.83 times more volatile than Mold Tek Packaging Limited. It trades about 0.12 of its potential returns per unit of risk. Mold Tek Packaging Limited is currently generating about -0.24 per unit of risk. If you would invest  5,180  in General Motors on September 4, 2024 and sell it today you would earn a total of  324.00  from holding General Motors or generate 6.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

General Motors  vs.  Mold Tek Packaging Limited

 Performance 
       Timeline  
General Motors 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in General Motors are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak primary indicators, GM displayed solid returns over the last few months and may actually be approaching a breakup point.
Mold Tek Packaging 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Mold Tek Packaging Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

GM and Mold Tek Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GM and Mold Tek

The main advantage of trading using opposite GM and Mold Tek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Mold Tek 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 Mold Tek will offset losses from the drop in Mold Tek's long position.
GM vs. Tesla Inc
GM vs. Nio Class A
GM vs. Lucid Group
GM vs. Honda Motor Co
The idea behind General Motors and Mold Tek Packaging Limited 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.
Mold Tek vs. ideaForge Technology Limited
Mold Tek vs. Nucleus Software Exports
Mold Tek vs. Transport of
Mold Tek vs. Sarthak Metals 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

Other Complementary Tools

Stocks Directory
Find actively traded stocks across global markets
CEOs Directory
Screen CEOs from public companies around the world
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
FinTech Suite
Use AI to screen and filter profitable investment opportunities


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY