Correlation Between GM and CABKSM
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By analyzing existing cross correlation between General Motors and CABKSM 6208 18 JAN 29, you can compare the effects of market volatilities on GM and CABKSM 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 CABKSM. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and CABKSM.
Diversification Opportunities for GM and CABKSM
Pay attention - limited upside
The 3 months correlation between GM and CABKSM is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and CABKSM 6208 18 JAN 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CABKSM 6208 18 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 CABKSM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CABKSM 6208 18 has no effect on the direction of GM i.e., GM and CABKSM go up and down completely randomly.
Pair Corralation between GM and CABKSM
Allowing for the 90-day total investment horizon General Motors is expected to generate 8.52 times more return on investment than CABKSM. However, GM is 8.52 times more volatile than CABKSM 6208 18 JAN 29. It trades about 0.17 of its potential returns per unit of risk. CABKSM 6208 18 JAN 29 is currently generating about -0.16 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 | Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
General Motors vs. CABKSM 6208 18 JAN 29
Performance |
| Timeline |
| General Motors |
| CABKSM 6208 18 |
GM and CABKSM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and CABKSM
The main advantage of trading using opposite GM and CABKSM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, CABKSM 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 CABKSM will offset losses from the drop in CABKSM's long position.The idea behind General Motors and CABKSM 6208 18 JAN 29 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.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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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