Correlation Between GM and Ophmr Eml
Can any of the company-specific risk be diversified away by investing in both GM and Ophmr Eml 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 Ophmr Eml into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Ophmr Eml Dbt, you can compare the effects of market volatilities on GM and Ophmr Eml 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 Ophmr Eml. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Ophmr Eml.
Diversification Opportunities for GM and Ophmr Eml
Significant diversification
The 3 months correlation between GM and Ophmr is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Ophmr Eml Dbt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ophmr Eml Dbt 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 Ophmr Eml. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ophmr Eml Dbt has no effect on the direction of GM i.e., GM and Ophmr Eml go up and down completely randomly.
Pair Corralation between GM and Ophmr Eml
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Ophmr Eml. In addition to that, GM is 5.97 times more volatile than Ophmr Eml Dbt. It trades about -0.09 of its total potential returns per unit of risk. Ophmr Eml Dbt is currently generating about 0.31 per unit of volatility. If you would invest 502.00 in Ophmr Eml Dbt on November 9, 2024 and sell it today you would earn a total of 15.00 from holding Ophmr Eml Dbt or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Ophmr Eml Dbt
Performance |
| Timeline |
| General Motors |
| Ophmr Eml Dbt |
GM and Ophmr Eml Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Ophmr Eml
The main advantage of trading using opposite GM and Ophmr Eml positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Ophmr Eml 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 Ophmr Eml will offset losses from the drop in Ophmr Eml's long position.The idea behind General Motors and Ophmr Eml Dbt 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.| Ophmr Eml vs. Aqr Long Short Equity | Ophmr Eml vs. Barings Emerging Markets | Ophmr Eml vs. Siit Emerging Markets | Ophmr Eml vs. T Rowe Price |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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