Correlation Between GM and 064058AJ9
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By analyzing existing cross correlation between General Motors and BK 37, you can compare the effects of market volatilities on GM and 064058AJ9 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 064058AJ9. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 064058AJ9.
Diversification Opportunities for GM and 064058AJ9
Very good diversification
The 3 months correlation between GM and 064058AJ9 is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and BK 37 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 064058AJ9 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 064058AJ9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 064058AJ9 has no effect on the direction of GM i.e., GM and 064058AJ9 go up and down completely randomly.
Pair Corralation between GM and 064058AJ9
Allowing for the 90-day total investment horizon General Motors is expected to generate 5.91 times more return on investment than 064058AJ9. However, GM is 5.91 times more volatile than BK 37. It trades about 0.17 of its potential returns per unit of risk. BK 37 is currently generating about 0.1 per unit of risk. If you would invest 5,076 in General Motors on September 1, 2024 and sell it today you would earn a total of 483.00 from holding General Motors or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. BK 37
Performance |
| Timeline |
| General Motors |
| 064058AJ9 |
GM and 064058AJ9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and 064058AJ9
The main advantage of trading using opposite GM and 064058AJ9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 064058AJ9 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 064058AJ9 will offset losses from the drop in 064058AJ9's long position.The idea behind General Motors and BK 37 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.| 064058AJ9 vs. Integral Ad Science | 064058AJ9 vs. Space Communication | 064058AJ9 vs. Playtika Holding Corp | 064058AJ9 vs. Cumulus Media Class |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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