Correlation Between GM and Prizma Pres
Can any of the company-specific risk be diversified away by investing in both GM and Prizma Pres 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 Prizma Pres into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Prizma Pres Matbaacilik, you can compare the effects of market volatilities on GM and Prizma Pres 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 Prizma Pres. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Prizma Pres.
Diversification Opportunities for GM and Prizma Pres
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GM and Prizma is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Prizma Pres Matbaacilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prizma Pres Matbaacilik 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 Prizma Pres. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prizma Pres Matbaacilik has no effect on the direction of GM i.e., GM and Prizma Pres go up and down completely randomly.
Pair Corralation between GM and Prizma Pres
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the Prizma Pres. But the stock apears to be less risky and, when comparing its historical volatility, General Motors is 1.17 times less risky than Prizma Pres. The stock trades about -0.07 of its potential returns per unit of risk. The Prizma Pres Matbaacilik is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 744.00 in Prizma Pres Matbaacilik on January 9, 2025 and sell it today you would earn a total of 347.00 from holding Prizma Pres Matbaacilik or generate 46.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
General Motors vs. Prizma Pres Matbaacilik
Performance |
| Timeline |
| General Motors |
| Prizma Pres Matbaacilik |
GM and Prizma Pres Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Prizma Pres
The main advantage of trading using opposite GM and Prizma Pres positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Prizma Pres 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 Prizma Pres will offset losses from the drop in Prizma Pres' long position.The idea behind General Motors and Prizma Pres Matbaacilik 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.| Prizma Pres vs. Koc Holding AS | Prizma Pres vs. Arcelik AS | Prizma Pres vs. Eregli Demir ve | Prizma Pres vs. Turkiye Sise ve |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Transaction History View history of all your transactions and understand their impact on performance |