Correlation Between GM and TOTAL PRODUCE
Can any of the company-specific risk be diversified away by investing in both GM and TOTAL PRODUCE 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 TOTAL PRODUCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and TOTAL PRODUCE, you can compare the effects of market volatilities on GM and TOTAL PRODUCE 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 TOTAL PRODUCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and TOTAL PRODUCE.
Diversification Opportunities for GM and TOTAL PRODUCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and TOTAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and TOTAL PRODUCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTAL PRODUCE 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 TOTAL PRODUCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTAL PRODUCE has no effect on the direction of GM i.e., GM and TOTAL PRODUCE go up and down completely randomly.
Pair Corralation between GM and TOTAL PRODUCE
If you would invest 4,124 in General Motors on September 4, 2024 and sell it today you would earn a total of 1,380 from holding General Motors or generate 33.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. TOTAL PRODUCE
Performance |
| Timeline |
| General Motors |
| TOTAL PRODUCE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and TOTAL PRODUCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and TOTAL PRODUCE
The main advantage of trading using opposite GM and TOTAL PRODUCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, TOTAL PRODUCE 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 TOTAL PRODUCE will offset losses from the drop in TOTAL PRODUCE's long position.The idea behind General Motors and TOTAL PRODUCE 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.| TOTAL PRODUCE vs. Calibre Mining Corp | TOTAL PRODUCE vs. TFS FINANCIAL | TOTAL PRODUCE vs. Computer And Technologies | TOTAL PRODUCE vs. Chiba Bank |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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