Correlation Between GM and Nordea Invest
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By analyzing existing cross correlation between General Motors and Nordea Invest Basis, you can compare the effects of market volatilities on GM and Nordea Invest 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Nordea Invest.
Diversification Opportunities for GM and Nordea Invest
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between GM and Nordea is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Nordea Invest Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Basis 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Basis has no effect on the direction of GM i.e., GM and Nordea Invest go up and down completely randomly.
Pair Corralation between GM and Nordea Invest
Allowing for the 90-day total investment horizon GM is expected to generate 1.48 times less return on investment than Nordea Invest. In addition to that, GM is 4.89 times more volatile than Nordea Invest Basis. It trades about 0.02 of its total potential returns per unit of risk. Nordea Invest Basis is currently generating about 0.16 per unit of volatility. If you would invest 15,400 in Nordea Invest Basis on October 29, 2024 and sell it today you would earn a total of 225.00 from holding Nordea Invest Basis or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
General Motors vs. Nordea Invest Basis
Performance |
| Timeline |
| General Motors |
| Nordea Invest Basis |
GM and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Nordea Invest
The main advantage of trading using opposite GM and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Nordea Invest 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 Nordea Invest will offset losses from the drop in Nordea Invest's long position.The idea behind General Motors and Nordea Invest Basis 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.| Nordea Invest vs. Novo Nordisk AS | Nordea Invest vs. Nordea Bank Abp | Nordea Invest vs. DSV Panalpina AS | Nordea Invest vs. AP Mller |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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