Correlation Between GM and 26442UAQ7
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By analyzing existing cross correlation between General Motors and DUK 525 15 MAR 33, you can compare the effects of market volatilities on GM and 26442UAQ7 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 26442UAQ7. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 26442UAQ7.
Diversification Opportunities for GM and 26442UAQ7
Pay attention - limited upside
The 3 months correlation between GM and 26442UAQ7 is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and DUK 525 15 MAR 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUK 525 15 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 26442UAQ7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUK 525 15 has no effect on the direction of GM i.e., GM and 26442UAQ7 go up and down completely randomly.
Pair Corralation between GM and 26442UAQ7
Allowing for the 90-day total investment horizon General Motors is expected to generate 2.76 times more return on investment than 26442UAQ7. However, GM is 2.76 times more volatile than DUK 525 15 MAR 33. It trades about 0.13 of its potential returns per unit of risk. DUK 525 15 MAR 33 is currently generating about -0.08 per unit of risk. If you would invest 5,154 in General Motors on August 30, 2024 and sell it today you would earn a total of 396.00 from holding General Motors or generate 7.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
General Motors vs. DUK 525 15 MAR 33
Performance |
| Timeline |
| General Motors |
| DUK 525 15 |
GM and 26442UAQ7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and 26442UAQ7
The main advantage of trading using opposite GM and 26442UAQ7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 26442UAQ7 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 26442UAQ7 will offset losses from the drop in 26442UAQ7's long position.The idea behind General Motors and DUK 525 15 MAR 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.| 26442UAQ7 vs. Fevertree Drinks Plc | 26442UAQ7 vs. Deluxe | 26442UAQ7 vs. Fluent Inc | 26442UAQ7 vs. Integral Ad Science |
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