Correlation Between GM and Sidus Space
Can any of the company-specific risk be diversified away by investing in both GM and Sidus Space 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 Sidus Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Sidus Space, you can compare the effects of market volatilities on GM and Sidus Space 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 Sidus Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Sidus Space.
Diversification Opportunities for GM and Sidus Space
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GM and Sidus is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Sidus Space in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sidus Space 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 Sidus Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sidus Space has no effect on the direction of GM i.e., GM and Sidus Space go up and down completely randomly.
Pair Corralation between GM and Sidus Space
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.17 times more return on investment than Sidus Space. However, General Motors is 5.73 times less risky than Sidus Space. It trades about 0.32 of its potential returns per unit of risk. Sidus Space is currently generating about -0.18 per unit of risk. If you would invest 5,273 in General Motors on August 28, 2024 and sell it today you would earn a total of 747.00 from holding General Motors or generate 14.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Sidus Space
Performance |
| Timeline |
| General Motors |
| Sidus Space |
GM and Sidus Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Sidus Space
The main advantage of trading using opposite GM and Sidus Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Sidus Space 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 Sidus Space will offset losses from the drop in Sidus Space's long position.The idea behind General Motors and Sidus Space 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.| Sidus Space vs. Intelligent Living Application | Sidus Space vs. Quoin Pharmaceuticals Ltd | Sidus Space vs. Kidpik Corp | Sidus Space vs. Virax Biolabs Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |