Correlation Between GM and Nykredit Invest
Can any of the company-specific risk be diversified away by investing in both GM and Nykredit Invest 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 Nykredit Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Nykredit Invest Lange, you can compare the effects of market volatilities on GM and Nykredit 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 Nykredit Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Nykredit Invest.
Diversification Opportunities for GM and Nykredit Invest
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Nykredit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Nykredit Invest Lange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nykredit Invest Lange 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 Nykredit Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nykredit Invest Lange has no effect on the direction of GM i.e., GM and Nykredit Invest go up and down completely randomly.
Pair Corralation between GM and Nykredit Invest
If you would invest 5,180 in General Motors on September 3, 2024 and sell it today you would earn a total of 379.00 from holding General Motors or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. Nykredit Invest Lange
Performance |
| Timeline |
| General Motors |
| Nykredit Invest Lange |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Nykredit Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Nykredit Invest
The main advantage of trading using opposite GM and Nykredit Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Nykredit 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 Nykredit Invest will offset losses from the drop in Nykredit Invest's long position.The idea behind General Motors and Nykredit Invest Lange 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.| Nykredit Invest vs. Sparinvest Lange | Nykredit Invest vs. Investeringsforeningen Danske Invest | Nykredit Invest vs. Sparinv SICAV | Nykredit Invest vs. Sparinvest Value Emerging |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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