Correlation Between GM and BARRICK
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and BARRICK PD AUSTRALIA, you can compare the effects of market volatilities on GM and BARRICK 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 BARRICK. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and BARRICK.
Diversification Opportunities for GM and BARRICK
Very good diversification
The 3 months correlation between GM and BARRICK is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and BARRICK PD AUSTRALIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BARRICK PD AUSTRALIA 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 BARRICK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BARRICK PD AUSTRALIA has no effect on the direction of GM i.e., GM and BARRICK go up and down completely randomly.
Pair Corralation between GM and BARRICK
Allowing for the 90-day total investment horizon General Motors is expected to generate 2.65 times more return on investment than BARRICK. However, GM is 2.65 times more volatile than BARRICK PD AUSTRALIA. It trades about 0.12 of its potential returns per unit of risk. BARRICK PD AUSTRALIA is currently generating about -0.01 per unit of risk. If you would invest 5,197 in General Motors on August 31, 2024 and sell it today you would earn a total of 353.00 from holding General Motors or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
General Motors vs. BARRICK PD AUSTRALIA
Performance |
| Timeline |
| General Motors |
| BARRICK PD AUSTRALIA |
GM and BARRICK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and BARRICK
The main advantage of trading using opposite GM and BARRICK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, BARRICK 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 BARRICK will offset losses from the drop in BARRICK's long position.The idea behind General Motors and BARRICK PD AUSTRALIA 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.| BARRICK vs. PepsiCo | BARRICK vs. Treasury Wine Estates | BARRICK vs. Kura Sushi USA | BARRICK vs. Meli Hotels International |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |