Correlation Between GM and APPLE
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and APPLE INC 335, you can compare the effects of market volatilities on GM and APPLE 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 APPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and APPLE.
Diversification Opportunities for GM and APPLE
Excellent diversification
The 3 months correlation between GM and APPLE is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and APPLE INC 335 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE INC 335 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 APPLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLE INC 335 has no effect on the direction of GM i.e., GM and APPLE go up and down completely randomly.
Pair Corralation between GM and APPLE
Allowing for the 90-day total investment horizon General Motors is expected to generate 4.78 times more return on investment than APPLE. However, GM is 4.78 times more volatile than APPLE INC 335. It trades about 0.14 of its potential returns per unit of risk. APPLE INC 335 is currently generating about -0.22 per unit of risk. If you would invest 5,292 in General Motors on August 24, 2024 and sell it today you would earn a total of 276.00 from holding General Motors or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
General Motors vs. APPLE INC 335
Performance |
| Timeline |
| General Motors |
| APPLE INC 335 |
GM and APPLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and APPLE
The main advantage of trading using opposite GM and APPLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, APPLE 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 APPLE will offset losses from the drop in APPLE's long position.The idea behind General Motors and APPLE INC 335 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.| APPLE vs. Iridium Communications | APPLE vs. Playtika Holding Corp | APPLE vs. Nextplat Corp | APPLE vs. Ziff Davis |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |