Correlation Between GM and PNE AG
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By analyzing existing cross correlation between General Motors and PNE AG, you can compare the effects of market volatilities on GM and PNE AG 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 PNE AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and PNE AG.
Diversification Opportunities for GM and PNE AG
Excellent diversification
The 3 months correlation between GM and PNE is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and PNE AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNE AG 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 PNE AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNE AG has no effect on the direction of GM i.e., GM and PNE AG go up and down completely randomly.
Pair Corralation between GM and PNE AG
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the PNE AG. In addition to that, GM is 1.75 times more volatile than PNE AG. It trades about -0.01 of its total potential returns per unit of risk. PNE AG is currently generating about 0.38 per unit of volatility. If you would invest 1,208 in PNE AG on December 1, 2024 and sell it today you would earn a total of 110.00 from holding PNE AG or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
General Motors vs. PNE AG
Performance |
| Timeline |
| General Motors |
| PNE AG |
GM and PNE AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and PNE AG
The main advantage of trading using opposite GM and PNE AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, PNE AG 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 PNE AG will offset losses from the drop in PNE AG's long position.The idea behind General Motors and PNE AG 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.| PNE AG vs. Dalata Hotel Group | PNE AG vs. Fukuyama Transporting Co | PNE AG vs. Transportadora de Gas | PNE AG vs. BII Railway Transportation |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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