Correlation Between GM and Ubs Sustainable
Can any of the company-specific risk be diversified away by investing in both GM and Ubs Sustainable 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 Ubs Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Ubs Sustainable Development, you can compare the effects of market volatilities on GM and Ubs Sustainable 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 Ubs Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Ubs Sustainable.
Diversification Opportunities for GM and Ubs Sustainable
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Ubs is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Ubs Sustainable Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Sustainable Deve 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 Ubs Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Sustainable Deve has no effect on the direction of GM i.e., GM and Ubs Sustainable go up and down completely randomly.
Pair Corralation between GM and Ubs Sustainable
Allowing for the 90-day total investment horizon General Motors is expected to generate 6.13 times more return on investment than Ubs Sustainable. However, GM is 6.13 times more volatile than Ubs Sustainable Development. It trades about 0.05 of its potential returns per unit of risk. Ubs Sustainable Development is currently generating about 0.04 per unit of risk. If you would invest 3,805 in General Motors on September 3, 2024 and sell it today you would earn a total of 1,754 from holding General Motors or generate 46.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Ubs Sustainable Development
Performance |
| Timeline |
| General Motors |
| Ubs Sustainable Deve |
GM and Ubs Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Ubs Sustainable
The main advantage of trading using opposite GM and Ubs Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Ubs Sustainable 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 Ubs Sustainable will offset losses from the drop in Ubs Sustainable's long position.The idea behind General Motors and Ubs Sustainable Development 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.| Ubs Sustainable vs. Alliancebernstein Global High | Ubs Sustainable vs. Ab Global Real | Ubs Sustainable vs. Nationwide Global Equity | Ubs Sustainable vs. Dreyfusstandish Global Fixed |
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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