Correlation Between GM and SFS REAL
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By analyzing existing cross correlation between General Motors and SFS REAL ESTATE, you can compare the effects of market volatilities on GM and SFS REAL 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 SFS REAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and SFS REAL.
Diversification Opportunities for GM and SFS REAL
Pay attention - limited upside
The 3 months correlation between GM and SFS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and SFS REAL ESTATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFS REAL ESTATE 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 SFS REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFS REAL ESTATE has no effect on the direction of GM i.e., GM and SFS REAL go up and down completely randomly.
Pair Corralation between GM and SFS REAL
Allowing for the 90-day total investment horizon GM is expected to generate 1.44 times less return on investment than SFS REAL. In addition to that, GM is 1.05 times more volatile than SFS REAL ESTATE. It trades about 0.12 of its total potential returns per unit of risk. SFS REAL ESTATE is currently generating about 0.18 per unit of volatility. If you would invest 7,897 in SFS REAL ESTATE on September 23, 2024 and sell it today you would earn a total of 10,048 from holding SFS REAL ESTATE or generate 127.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 92.22% |
| Values | Daily Returns |
General Motors vs. SFS REAL ESTATE
Performance |
| Timeline |
| General Motors |
| SFS REAL ESTATE |
GM and SFS REAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and SFS REAL
The main advantage of trading using opposite GM and SFS REAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, SFS REAL 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 SFS REAL will offset losses from the drop in SFS REAL's long position.The idea behind General Motors and SFS REAL ESTATE 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.| SFS REAL vs. ZENITH BANK PLC | SFS REAL vs. GUINEA INSURANCE PLC | SFS REAL vs. SECURE ELECTRONIC TECHNOLOGY | SFS REAL vs. CHELLARAMS PLC |
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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