Correlation Between GM and Shemaroo Entertainment
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By analyzing existing cross correlation between General Motors and Shemaroo Entertainment Limited, you can compare the effects of market volatilities on GM and Shemaroo Entertainment 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 Shemaroo Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Shemaroo Entertainment.
Diversification Opportunities for GM and Shemaroo Entertainment
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Shemaroo is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Shemaroo Entertainment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shemaroo Entertainment 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 Shemaroo Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shemaroo Entertainment has no effect on the direction of GM i.e., GM and Shemaroo Entertainment go up and down completely randomly.
Pair Corralation between GM and Shemaroo Entertainment
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.51 times more return on investment than Shemaroo Entertainment. However, General Motors is 1.95 times less risky than Shemaroo Entertainment. It trades about 0.11 of its potential returns per unit of risk. Shemaroo Entertainment Limited is currently generating about 0.01 per unit of risk. If you would invest 3,280 in General Motors on August 29, 2024 and sell it today you would earn a total of 2,199 from holding General Motors or generate 67.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
General Motors vs. Shemaroo Entertainment Limited
Performance |
| Timeline |
| General Motors |
| Shemaroo Entertainment |
GM and Shemaroo Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Shemaroo Entertainment
The main advantage of trading using opposite GM and Shemaroo Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Shemaroo Entertainment 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 Shemaroo Entertainment will offset losses from the drop in Shemaroo Entertainment's long position.The idea behind General Motors and Shemaroo Entertainment Limited 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.| Shemaroo Entertainment vs. Ratnamani Metals Tubes | Shemaroo Entertainment vs. Bajaj Holdings Investment | Shemaroo Entertainment vs. India Glycols Limited | Shemaroo Entertainment vs. Indo Borax Chemicals |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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