Correlation Between GM and Taj GVK
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By analyzing existing cross correlation between General Motors and Taj GVK Hotels, you can compare the effects of market volatilities on GM and Taj GVK 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 Taj GVK. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Taj GVK.
Diversification Opportunities for GM and Taj GVK
Very good diversification
The 3 months correlation between GM and Taj is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Taj GVK Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taj GVK Hotels 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 Taj GVK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taj GVK Hotels has no effect on the direction of GM i.e., GM and Taj GVK go up and down completely randomly.
Pair Corralation between GM and Taj GVK
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.93 times more return on investment than Taj GVK. However, General Motors is 1.07 times less risky than Taj GVK. It trades about -0.13 of its potential returns per unit of risk. Taj GVK Hotels is currently generating about -0.26 per unit of risk. If you would invest 5,353 in General Motors on November 5, 2024 and sell it today you would lose (407.00) from holding General Motors or give up 7.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
General Motors vs. Taj GVK Hotels
Performance |
| Timeline |
| General Motors |
| Taj GVK Hotels |
GM and Taj GVK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Taj GVK
The main advantage of trading using opposite GM and Taj GVK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Taj GVK 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 Taj GVK will offset losses from the drop in Taj GVK's long position.The idea behind General Motors and Taj GVK Hotels 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.| Taj GVK vs. Ankit Metal Power | Taj GVK vs. LLOYDS METALS AND | Taj GVK vs. MIC Electronics Limited | Taj GVK vs. Hisar Metal Industries |
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 CEOs Directory module to screen CEOs from public companies around the world.
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