Correlation Between GM and Touchstone Ohio
Can any of the company-specific risk be diversified away by investing in both GM and Touchstone Ohio 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 Touchstone Ohio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Touchstone Ohio Tax, you can compare the effects of market volatilities on GM and Touchstone Ohio 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 Touchstone Ohio. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Touchstone Ohio.
Diversification Opportunities for GM and Touchstone Ohio
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between GM and Touchstone is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Touchstone Ohio Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Ohio Tax 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 Touchstone Ohio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Ohio Tax has no effect on the direction of GM i.e., GM and Touchstone Ohio go up and down completely randomly.
Pair Corralation between GM and Touchstone Ohio
Allowing for the 90-day total investment horizon General Motors is expected to generate 9.77 times more return on investment than Touchstone Ohio. However, GM is 9.77 times more volatile than Touchstone Ohio Tax. It trades about 0.03 of its potential returns per unit of risk. Touchstone Ohio Tax is currently generating about 0.07 per unit of risk. If you would invest 3,902 in General Motors on November 27, 2024 and sell it today you would earn a total of 755.00 from holding General Motors or generate 19.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Touchstone Ohio Tax
Performance |
| Timeline |
| General Motors |
| Touchstone Ohio Tax |
GM and Touchstone Ohio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Touchstone Ohio
The main advantage of trading using opposite GM and Touchstone Ohio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Touchstone Ohio 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 Touchstone Ohio will offset losses from the drop in Touchstone Ohio's long position.The idea behind General Motors and Touchstone Ohio Tax 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.| Touchstone Ohio vs. Transamerica Emerging Markets | Touchstone Ohio vs. Ep Emerging Markets | Touchstone Ohio vs. Gmo Emerging Markets | Touchstone Ohio vs. Dws Emerging Markets |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |