Correlation Between GM and Nordea Invest
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and Nordea Invest Global, 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
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GM and Nordea is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Nordea Invest Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Global 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 Global 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 General Motors is expected to generate 1.74 times more return on investment than Nordea Invest. However, GM is 1.74 times more volatile than Nordea Invest Global. It trades about 0.07 of its potential returns per unit of risk. Nordea Invest Global is currently generating about 0.06 per unit of risk. If you would invest 3,274 in General Motors on September 19, 2024 and sell it today you would earn a total of 1,841 from holding General Motors or generate 56.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 79.59% |
| Values | Daily Returns |
General Motors vs. Nordea Invest Global
Performance |
| Timeline |
| General Motors |
| Nordea Invest Global |
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 Global 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. Scandinavian Medical Solutions | Nordea Invest vs. Cessatech AS | Nordea Invest vs. Ringkjoebing Landbobank AS | Nordea Invest vs. PARKEN Sport Entertainment |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |