Correlation Between GM and Kelly Strategic
Can any of the company-specific risk be diversified away by investing in both GM and Kelly Strategic 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 Kelly Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Kelly Strategic Management, you can compare the effects of market volatilities on GM and Kelly Strategic 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 Kelly Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Kelly Strategic.
Diversification Opportunities for GM and Kelly Strategic
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GM and Kelly is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Kelly Strategic Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Strategic Mana 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 Kelly Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Strategic Mana has no effect on the direction of GM i.e., GM and Kelly Strategic go up and down completely randomly.
Pair Corralation between GM and Kelly Strategic
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.55 times more return on investment than Kelly Strategic. However, GM is 1.55 times more volatile than Kelly Strategic Management. It trades about 0.05 of its potential returns per unit of risk. Kelly Strategic Management is currently generating about 0.05 per unit of risk. If you would invest 3,805 in General Motors on September 3, 2024 and sell it today you would earn a total of 1,699 from holding General Motors or generate 44.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 30.91% |
| Values | Daily Returns |
General Motors vs. Kelly Strategic Management
Performance |
| Timeline |
| General Motors |
| Kelly Strategic Mana |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Kelly Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Kelly Strategic
The main advantage of trading using opposite GM and Kelly Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Kelly Strategic 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 Kelly Strategic will offset losses from the drop in Kelly Strategic's long position.The idea behind General Motors and Kelly Strategic Management 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.| Kelly Strategic vs. Vanguard Real Estate | Kelly Strategic vs. Howard Hughes | Kelly Strategic vs. The Real Estate | Kelly Strategic vs. Site Centers Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |