Correlation Between GM and MULTI TREX

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

Diversification Opportunities for GM and MULTI TREX

0.0
  Correlation Coefficient
 GM

Pay attention - limited upside

The 3 months correlation between GM and MULTI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and MULTI TREX INTEGRATED FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MULTI TREX INTEGRATED 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 MULTI TREX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MULTI TREX INTEGRATED has no effect on the direction of GM i.e., GM and MULTI TREX go up and down completely randomly.

Pair Corralation between GM and MULTI TREX

If you would invest  3,324  in General Motors on September 2, 2024 and sell it today you would earn a total of  2,235  from holding General Motors or generate 67.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.39%
ValuesDaily Returns

General Motors  vs.  MULTI TREX INTEGRATED FOODS

 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.
MULTI TREX INTEGRATED 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days MULTI TREX INTEGRATED FOODS has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, MULTI TREX is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

GM and MULTI TREX Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GM and MULTI TREX

The main advantage of trading using opposite GM and MULTI TREX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, MULTI TREX 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 MULTI TREX will offset losses from the drop in MULTI TREX's long position.
GM vs. Tesla Inc
GM vs. Rivian Automotive
GM vs. Nio Class A
GM vs. Xpeng Inc
The idea behind General Motors and MULTI TREX INTEGRATED FOODS 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.
MULTI TREX vs. CHAMPION BREWERIES PLC
MULTI TREX vs. INTERNATIONAL BREWERIES PLC
MULTI TREX vs. STACO INSURANCE PLC
MULTI TREX vs. STERLING FINANCIAL HOLDINGS
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

Other Complementary Tools

CEOs Directory
Screen CEOs from public companies around the world
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Options Analysis
Analyze and evaluate options and option chains as a potential hedge 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