Correlation Between GM and NewFunds Low
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By analyzing existing cross correlation between General Motors and NewFunds Low Volatility, you can compare the effects of market volatilities on GM and NewFunds Low 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 NewFunds Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and NewFunds Low.
Diversification Opportunities for GM and NewFunds Low
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between GM and NewFunds is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and NewFunds Low Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewFunds Low Volatility 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 NewFunds Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewFunds Low Volatility has no effect on the direction of GM i.e., GM and NewFunds Low go up and down completely randomly.
Pair Corralation between GM and NewFunds Low
Allowing for the 90-day total investment horizon General Motors is expected to generate 2.53 times more return on investment than NewFunds Low. However, GM is 2.53 times more volatile than NewFunds Low Volatility. It trades about 0.08 of its potential returns per unit of risk. NewFunds Low Volatility is currently generating about 0.1 per unit of risk. If you would invest 3,275 in General Motors on September 12, 2024 and sell it today you would earn a total of 1,999 from holding General Motors or generate 61.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.61% |
| Values | Daily Returns |
General Motors vs. NewFunds Low Volatility
Performance |
| Timeline |
| General Motors |
| NewFunds Low Volatility |
GM and NewFunds Low Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and NewFunds Low
The main advantage of trading using opposite GM and NewFunds Low positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, NewFunds Low 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 NewFunds Low will offset losses from the drop in NewFunds Low's long position.The idea behind General Motors and NewFunds Low Volatility 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.| NewFunds Low vs. NewFunds GOVI Exchange | NewFunds Low vs. NewFunds Shariah Top | NewFunds Low vs. NewFunds MAPPS Growth | NewFunds Low vs. NewFunds TRACI 3 |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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