Correlation Between GM and Expat Slovakia
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By analyzing existing cross correlation between General Motors and Expat Slovakia Sax, you can compare the effects of market volatilities on GM and Expat Slovakia 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 Expat Slovakia. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Expat Slovakia.
Diversification Opportunities for GM and Expat Slovakia
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between GM and Expat is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Expat Slovakia Sax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expat Slovakia Sax 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 Expat Slovakia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expat Slovakia Sax has no effect on the direction of GM i.e., GM and Expat Slovakia go up and down completely randomly.
Pair Corralation between GM and Expat Slovakia
Allowing for the 90-day total investment horizon General Motors is expected to generate 2.7 times more return on investment than Expat Slovakia. However, GM is 2.7 times more volatile than Expat Slovakia Sax. It trades about 0.05 of its potential returns per unit of risk. Expat Slovakia Sax is currently generating about -0.04 per unit of risk. If you would invest 3,805 in General Motors on September 3, 2024 and sell it today you would earn a total of 1,754 from holding General Motors or generate 46.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.61% |
| Values | Daily Returns |
General Motors vs. Expat Slovakia Sax
Performance |
| Timeline |
| General Motors |
| Expat Slovakia Sax |
GM and Expat Slovakia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Expat Slovakia
The main advantage of trading using opposite GM and Expat Slovakia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Expat Slovakia 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 Expat Slovakia will offset losses from the drop in Expat Slovakia's long position.The idea behind General Motors and Expat Slovakia Sax 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.| Expat Slovakia vs. Expat Czech PX | Expat Slovakia vs. Expat Croatia Crobex | Expat Slovakia vs. Expat Serbia Belex15 | Expat Slovakia vs. Expat Poland WIG20 |
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 Stocks Directory module to find actively traded stocks across global markets.
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