Correlation Between GM and 23338VAS5
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By analyzing existing cross correlation between General Motors and DTE 52 01 APR 33, you can compare the effects of market volatilities on GM and 23338VAS5 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 23338VAS5. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 23338VAS5.
Diversification Opportunities for GM and 23338VAS5
Very weak diversification
The 3 months correlation between GM and 23338VAS5 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and DTE 52 01 APR 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DTE 52 01 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 23338VAS5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DTE 52 01 has no effect on the direction of GM i.e., GM and 23338VAS5 go up and down completely randomly.
Pair Corralation between GM and 23338VAS5
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the 23338VAS5. In addition to that, GM is 5.38 times more volatile than DTE 52 01 APR 33. It trades about -0.05 of its total potential returns per unit of risk. DTE 52 01 APR 33 is currently generating about -0.13 per unit of volatility. If you would invest 10,033 in DTE 52 01 APR 33 on November 3, 2024 and sell it today you would lose (155.00) from holding DTE 52 01 APR 33 or give up 1.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
General Motors vs. DTE 52 01 APR 33
Performance |
| Timeline |
| General Motors |
| DTE 52 01 |
GM and 23338VAS5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and 23338VAS5
The main advantage of trading using opposite GM and 23338VAS5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 23338VAS5 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 23338VAS5 will offset losses from the drop in 23338VAS5's long position.The idea behind General Motors and DTE 52 01 APR 33 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.| 23338VAS5 vs. AEP TEX INC | 23338VAS5 vs. US BANK NATIONAL | 23338VAS5 vs. Reliance Global Group | 23338VAS5 vs. Bayerische Motoren Werke |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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