Correlation Between GM and Solanbridge
Can any of the company-specific risk be diversified away by investing in both GM and Solanbridge 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 Solanbridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Solanbridge Group, you can compare the effects of market volatilities on GM and Solanbridge 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 Solanbridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Solanbridge.
Diversification Opportunities for GM and Solanbridge
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Solanbridge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Solanbridge Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solanbridge Group 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 Solanbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solanbridge Group has no effect on the direction of GM i.e., GM and Solanbridge go up and down completely randomly.
Pair Corralation between GM and Solanbridge
If you would invest 4,484 in General Motors on August 30, 2024 and sell it today you would earn a total of 1,066 from holding General Motors or generate 23.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
General Motors vs. Solanbridge Group
Performance |
| Timeline |
| General Motors |
| Solanbridge Group |
GM and Solanbridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Solanbridge
The main advantage of trading using opposite GM and Solanbridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Solanbridge 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 Solanbridge will offset losses from the drop in Solanbridge's long position.The idea behind General Motors and Solanbridge Group 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.| Solanbridge vs. Emergent Biosolutions | Solanbridge vs. Bausch Health Companies | Solanbridge vs. Neurocrine Biosciences | Solanbridge vs. Teva Pharma Industries |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |