Correlation Between GM and UBI Blockchain
Can any of the company-specific risk be diversified away by investing in both GM and UBI Blockchain 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 UBI Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and UBI Blockchain Internet, you can compare the effects of market volatilities on GM and UBI Blockchain 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 UBI Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and UBI Blockchain.
Diversification Opportunities for GM and UBI Blockchain
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and UBI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and UBI Blockchain Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBI Blockchain Internet 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 UBI Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBI Blockchain Internet has no effect on the direction of GM i.e., GM and UBI Blockchain go up and down completely randomly.
Pair Corralation between GM and UBI Blockchain
If you would invest 4,602 in General Motors on September 12, 2024 and sell it today you would earn a total of 602.00 from holding General Motors or generate 13.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
General Motors vs. UBI Blockchain Internet
Performance |
| Timeline |
| General Motors |
| UBI Blockchain Internet |
GM and UBI Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and UBI Blockchain
The main advantage of trading using opposite GM and UBI Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, UBI Blockchain 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 UBI Blockchain will offset losses from the drop in UBI Blockchain's long position.The idea behind General Motors and UBI Blockchain Internet 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.| UBI Blockchain vs. Mojo Data Solutions | UBI Blockchain vs. TrackX Holdings | UBI Blockchain vs. Maptelligent | UBI Blockchain vs. Obocon Inc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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