Correlation Between GM and QEP Resources
Can any of the company-specific risk be diversified away by investing in both GM and QEP Resources 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 QEP Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and QEP Resources, you can compare the effects of market volatilities on GM and QEP Resources 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 QEP Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and QEP Resources.
Diversification Opportunities for GM and QEP Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and QEP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and QEP Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QEP Resources 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 QEP Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QEP Resources has no effect on the direction of GM i.e., GM and QEP Resources go up and down completely randomly.
Pair Corralation between GM and QEP Resources
If you would invest 3,568 in General Motors on October 13, 2024 and sell it today you would earn a total of 1,417 from holding General Motors or generate 39.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. QEP Resources
Performance |
| Timeline |
| General Motors |
| QEP Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and QEP Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and QEP Resources
The main advantage of trading using opposite GM and QEP Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, QEP Resources 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 QEP Resources will offset losses from the drop in QEP Resources' long position.| GM vs. Canoo Inc | GM vs. Aquagold International | GM vs. Morningstar Unconstrained Allocation | GM vs. Thrivent High Yield |
| QEP Resources vs. Alvotech | QEP Resources vs. Sonida Senior Living | QEP Resources vs. Valneva SE ADR | QEP Resources vs. Universal Insurance Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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