Correlation Between GM and Spectaire Holdings
Can any of the company-specific risk be diversified away by investing in both GM and Spectaire Holdings 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 Spectaire Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Spectaire Holdings, you can compare the effects of market volatilities on GM and Spectaire Holdings 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 Spectaire Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Spectaire Holdings.
Diversification Opportunities for GM and Spectaire Holdings
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GM and Spectaire is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Spectaire Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectaire Holdings 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 Spectaire Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectaire Holdings has no effect on the direction of GM i.e., GM and Spectaire Holdings go up and down completely randomly.
Pair Corralation between GM and Spectaire Holdings
If you would invest 5,096 in General Motors on September 2, 2024 and sell it today you would earn a total of 463.00 from holding General Motors or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
General Motors vs. Spectaire Holdings
Performance |
| Timeline |
| General Motors |
| Spectaire Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Spectaire Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Spectaire Holdings
The main advantage of trading using opposite GM and Spectaire Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Spectaire Holdings 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 Spectaire Holdings will offset losses from the drop in Spectaire Holdings' long position.The idea behind General Motors and Spectaire Holdings 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.| Spectaire Holdings vs. Globalfoundries | Spectaire Holdings vs. Entegris | Spectaire Holdings vs. RCS MediaGroup SpA | Spectaire Holdings vs. Vishay Intertechnology |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |