Correlation Between GM and Silmaasema Oyj
Can any of the company-specific risk be diversified away by investing in both GM and Silmaasema Oyj 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 Silmaasema Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Silmaasema Oyj, you can compare the effects of market volatilities on GM and Silmaasema Oyj 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 Silmaasema Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Silmaasema Oyj.
Diversification Opportunities for GM and Silmaasema Oyj
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Silmaasema is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Silmaasema Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silmaasema Oyj 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 Silmaasema Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silmaasema Oyj has no effect on the direction of GM i.e., GM and Silmaasema Oyj go up and down completely randomly.
Pair Corralation between GM and Silmaasema Oyj
If you would invest 4,551 in General Motors on August 30, 2024 and sell it today you would earn a total of 999.00 from holding General Motors or generate 21.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. Silmaasema Oyj
Performance |
| Timeline |
| General Motors |
| Silmaasema Oyj |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Silmaasema Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Silmaasema Oyj
The main advantage of trading using opposite GM and Silmaasema Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Silmaasema Oyj 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 Silmaasema Oyj will offset losses from the drop in Silmaasema Oyj's long position.The idea behind General Motors and Silmaasema Oyj 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.| Silmaasema Oyj vs. SSH Communications Security | Silmaasema Oyj vs. Alma Media Oyj | Silmaasema Oyj vs. Nightingale Health Oyj | Silmaasema Oyj vs. Nordea Bank Abp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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