Correlation Between GM and Silo Wellness
Can any of the company-specific risk be diversified away by investing in both GM and Silo Wellness 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 Silo Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Silo Wellness, you can compare the effects of market volatilities on GM and Silo Wellness 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 Silo Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Silo Wellness.
Diversification Opportunities for GM and Silo Wellness
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Silo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Silo Wellness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silo Wellness 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 Silo Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silo Wellness has no effect on the direction of GM i.e., GM and Silo Wellness go up and down completely randomly.
Pair Corralation between GM and Silo Wellness
If you would invest 5,273 in General Motors on August 29, 2024 and sell it today you would earn a total of 206.00 from holding General Motors or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
General Motors vs. Silo Wellness
Performance |
| Timeline |
| General Motors |
| Silo Wellness |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Silo Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Silo Wellness
The main advantage of trading using opposite GM and Silo Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Silo Wellness 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 Silo Wellness will offset losses from the drop in Silo Wellness' long position.The idea behind General Motors and Silo Wellness 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.| Silo Wellness vs. Flowr Corp | Silo Wellness vs. Slang Worldwide | Silo Wellness vs. Eisai Co | Silo Wellness vs. BellRock Brands |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |