Correlation Between GM and AUTODESK
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By analyzing existing cross correlation between General Motors and AUTODESK INC 35, you can compare the effects of market volatilities on GM and AUTODESK 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 AUTODESK. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and AUTODESK.
Diversification Opportunities for GM and AUTODESK
Excellent diversification
The 3 months correlation between GM and AUTODESK is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and AUTODESK INC 35 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUTODESK INC 35 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 AUTODESK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUTODESK INC 35 has no effect on the direction of GM i.e., GM and AUTODESK go up and down completely randomly.
Pair Corralation between GM and AUTODESK
Allowing for the 90-day total investment horizon General Motors is expected to generate 5.91 times more return on investment than AUTODESK. However, GM is 5.91 times more volatile than AUTODESK INC 35. It trades about 0.08 of its potential returns per unit of risk. AUTODESK INC 35 is currently generating about -0.05 per unit of risk. If you would invest 4,539 in General Motors on September 3, 2024 and sell it today you would earn a total of 965.00 from holding General Motors or generate 21.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.8% |
| Values | Daily Returns |
General Motors vs. AUTODESK INC 35
Performance |
| Timeline |
| General Motors |
| AUTODESK INC 35 |
GM and AUTODESK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and AUTODESK
The main advantage of trading using opposite GM and AUTODESK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, AUTODESK 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 AUTODESK will offset losses from the drop in AUTODESK's long position.The idea behind General Motors and AUTODESK INC 35 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.| AUTODESK vs. NioCorp Developments Ltd | AUTODESK vs. Western Sierra Mining | AUTODESK vs. Perseus Mining Limited | AUTODESK vs. Evolution Mining |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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