Correlation Between GM and 291011BS2
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and EMR 28 21 DEC 51, you can compare the effects of market volatilities on GM and 291011BS2 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 291011BS2. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 291011BS2.
Diversification Opportunities for GM and 291011BS2
Pay attention - limited upside
The 3 months correlation between GM and 291011BS2 is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and EMR 28 21 DEC 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMR 28 21 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 291011BS2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMR 28 21 has no effect on the direction of GM i.e., GM and 291011BS2 go up and down completely randomly.
Pair Corralation between GM and 291011BS2
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.87 times more return on investment than 291011BS2. However, General Motors is 1.15 times less risky than 291011BS2. It trades about 0.16 of its potential returns per unit of risk. EMR 28 21 DEC 51 is currently generating about 0.0 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 Against |
| Strength | Significant |
| Accuracy | 80.95% |
| Values | Daily Returns |
General Motors vs. EMR 28 21 DEC 51
Performance |
| Timeline |
| General Motors |
| EMR 28 21 |
GM and 291011BS2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and 291011BS2
The main advantage of trading using opposite GM and 291011BS2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 291011BS2 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 291011BS2 will offset losses from the drop in 291011BS2's long position.The idea behind General Motors and EMR 28 21 DEC 51 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.| 291011BS2 vs. Fevertree Drinks Plc | 291011BS2 vs. Videolocity International | 291011BS2 vs. Logan Ridge Finance | 291011BS2 vs. Keurig Dr Pepper |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges |