Correlation Between GM and OneAscent International
Can any of the company-specific risk be diversified away by investing in both GM and OneAscent International 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 OneAscent International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and OneAscent International Equity, you can compare the effects of market volatilities on GM and OneAscent International 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 OneAscent International. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and OneAscent International.
Diversification Opportunities for GM and OneAscent International
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GM and OneAscent is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and OneAscent International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneAscent International 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 OneAscent International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneAscent International has no effect on the direction of GM i.e., GM and OneAscent International go up and down completely randomly.
Pair Corralation between GM and OneAscent International
Allowing for the 90-day total investment horizon General Motors is expected to generate 3.94 times more return on investment than OneAscent International. However, GM is 3.94 times more volatile than OneAscent International Equity. It trades about 0.17 of its potential returns per unit of risk. OneAscent International Equity is currently generating about 0.03 per unit of risk. If you would invest 5,076 in General Motors on September 1, 2024 and sell it today you would earn a total of 483.00 from holding General Motors or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
General Motors vs. OneAscent International Equity
Performance |
| Timeline |
| General Motors |
| OneAscent International |
GM and OneAscent International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and OneAscent International
The main advantage of trading using opposite GM and OneAscent International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, OneAscent International 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 OneAscent International will offset losses from the drop in OneAscent International's long position.The idea behind General Motors and OneAscent International Equity 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.| OneAscent International vs. iShares ESG Aggregate | OneAscent International vs. SPDR MSCI Emerging | OneAscent International vs. Aquagold International | OneAscent International vs. Thrivent High Yield |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |