Correlation Between GM and NewFunds MAPPS
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By analyzing existing cross correlation between General Motors and NewFunds MAPPS Growth, you can compare the effects of market volatilities on GM and NewFunds MAPPS 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 MAPPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and NewFunds MAPPS.
Diversification Opportunities for GM and NewFunds MAPPS
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between GM and NewFunds is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and NewFunds MAPPS Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewFunds MAPPS Growth 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 MAPPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewFunds MAPPS Growth has no effect on the direction of GM i.e., GM and NewFunds MAPPS go up and down completely randomly.
Pair Corralation between GM and NewFunds MAPPS
Allowing for the 90-day total investment horizon General Motors is expected to generate 4.7 times more return on investment than NewFunds MAPPS. However, GM is 4.7 times more volatile than NewFunds MAPPS Growth. It trades about 0.16 of its potential returns per unit of risk. NewFunds MAPPS Growth is currently generating about -0.07 per unit of risk. 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 Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
General Motors vs. NewFunds MAPPS Growth
Performance |
| Timeline |
| General Motors |
| NewFunds MAPPS Growth |
GM and NewFunds MAPPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and NewFunds MAPPS
The main advantage of trading using opposite GM and NewFunds MAPPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, NewFunds MAPPS 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 MAPPS will offset losses from the drop in NewFunds MAPPS's long position.The idea behind General Motors and NewFunds MAPPS Growth 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 MAPPS vs. Europa Metals | NewFunds MAPPS vs. JSE Limited | NewFunds MAPPS vs. British American Tobacco | NewFunds MAPPS vs. Kap Industrial Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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