Correlation Between GM and DTRGR
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By analyzing existing cross correlation between General Motors and DTRGR 365 07 APR 27, you can compare the effects of market volatilities on GM and DTRGR 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 DTRGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and DTRGR.
Diversification Opportunities for GM and DTRGR
Modest diversification
The 3 months correlation between GM and DTRGR is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and DTRGR 365 07 APR 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DTRGR 365 07 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 DTRGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DTRGR 365 07 has no effect on the direction of GM i.e., GM and DTRGR go up and down completely randomly.
Pair Corralation between GM and DTRGR
Allowing for the 90-day total investment horizon General Motors is expected to generate 14.45 times more return on investment than DTRGR. However, GM is 14.45 times more volatile than DTRGR 365 07 APR 27. It trades about 0.16 of its potential returns per unit of risk. DTRGR 365 07 APR 27 is currently generating about -0.03 per unit of risk. If you would invest 5,096 in General Motors on September 2, 2024 and sell it today you would earn a total of 463.00 from holding General Motors or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
General Motors vs. DTRGR 365 07 APR 27
Performance |
| Timeline |
| General Motors |
| DTRGR 365 07 |
GM and DTRGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and DTRGR
The main advantage of trading using opposite GM and DTRGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, DTRGR 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 DTRGR will offset losses from the drop in DTRGR's long position.The idea behind General Motors and DTRGR 365 07 APR 27 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.| DTRGR vs. Avient Corp | DTRGR vs. CF Industries Holdings | DTRGR vs. Jeld Wen Holding | DTRGR vs. Tencent Music Entertainment |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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