Correlation Between GM and Standard Bank
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By analyzing existing cross correlation between General Motors and Standard Bank WTI, you can compare the effects of market volatilities on GM and Standard Bank 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 Standard Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Standard Bank.
Diversification Opportunities for GM and Standard Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Standard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Standard Bank WTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Bank WTI 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 Standard Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Bank WTI has no effect on the direction of GM i.e., GM and Standard Bank go up and down completely randomly.
Pair Corralation between GM and Standard Bank
If you would invest 5,273 in General Motors on August 27, 2024 and sell it today you would earn a total of 580.00 from holding General Motors or generate 11.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Standard Bank WTI
Performance |
| Timeline |
| General Motors |
| Standard Bank WTI |
GM and Standard Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Standard Bank
The main advantage of trading using opposite GM and Standard Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Standard Bank 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 Standard Bank will offset losses from the drop in Standard Bank's long position.The idea behind General Motors and Standard Bank WTI 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.| Standard Bank vs. Standard Bank Oil | Standard Bank vs. FNB ETN on | Standard Bank vs. Satrix MSCI World | Standard Bank vs. GSETNC |
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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