Correlation Between GM and STARX FDO
Can any of the company-specific risk be diversified away by investing in both GM and STARX FDO 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 STARX FDO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and STARX FDO INV, you can compare the effects of market volatilities on GM and STARX FDO 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 STARX FDO. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and STARX FDO.
Diversification Opportunities for GM and STARX FDO
Pay attention - limited upside
The 3 months correlation between GM and STARX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and STARX FDO INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STARX FDO INV 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 STARX FDO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STARX FDO INV has no effect on the direction of GM i.e., GM and STARX FDO go up and down completely randomly.
Pair Corralation between GM and STARX FDO
If you would invest 4,718 in General Motors on September 13, 2024 and sell it today you would earn a total of 494.50 from holding General Motors or generate 10.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. STARX FDO INV
Performance |
| Timeline |
| General Motors |
| STARX FDO INV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and STARX FDO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and STARX FDO
The main advantage of trading using opposite GM and STARX FDO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, STARX FDO 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 STARX FDO will offset losses from the drop in STARX FDO's long position.The idea behind General Motors and STARX FDO INV 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.| STARX FDO vs. FDO INV IMOB | STARX FDO vs. SUPREMO FUNDO DE | STARX FDO vs. Real Estate Investment | STARX FDO vs. NAVI CRDITO IMOBILIRIO |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |