Correlation Between GM and Triterras
Can any of the company-specific risk be diversified away by investing in both GM and Triterras 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 Triterras into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Triterras, you can compare the effects of market volatilities on GM and Triterras 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 Triterras. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Triterras.
Diversification Opportunities for GM and Triterras
Excellent diversification
The 3 months correlation between GM and Triterras is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Triterras in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triterras 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 Triterras. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triterras has no effect on the direction of GM i.e., GM and Triterras go up and down completely randomly.
Pair Corralation between GM and Triterras
If you would invest 3,617 in General Motors on September 2, 2024 and sell it today you would earn a total of 1,942 from holding General Motors or generate 53.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.27% |
| Values | Daily Returns |
General Motors vs. Triterras
Performance |
| Timeline |
| General Motors |
| Triterras |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Triterras Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Triterras
The main advantage of trading using opposite GM and Triterras positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Triterras 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 Triterras will offset losses from the drop in Triterras' long position.The idea behind General Motors and Triterras 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.| Triterras vs. Logiq Inc | Triterras vs. KwikClick | Triterras vs. LZG International | Triterras vs. Sekur Private Data |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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