Correlation Between GM and EVERSOURCE
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and EVERSOURCE ENERGY 33, you can compare the effects of market volatilities on GM and EVERSOURCE 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 EVERSOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and EVERSOURCE.
Diversification Opportunities for GM and EVERSOURCE
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GM and EVERSOURCE is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and EVERSOURCE ENERGY 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVERSOURCE ENERGY 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 EVERSOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVERSOURCE ENERGY has no effect on the direction of GM i.e., GM and EVERSOURCE go up and down completely randomly.
Pair Corralation between GM and EVERSOURCE
Allowing for the 90-day total investment horizon General Motors is expected to generate 2.65 times more return on investment than EVERSOURCE. However, GM is 2.65 times more volatile than EVERSOURCE ENERGY 33. It trades about 0.06 of its potential returns per unit of risk. EVERSOURCE ENERGY 33 is currently generating about 0.01 per unit of risk. If you would invest 3,726 in General Motors on August 28, 2024 and sell it today you would earn a total of 2,294 from holding General Motors or generate 61.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.18% |
| Values | Daily Returns |
General Motors vs. EVERSOURCE ENERGY 33
Performance |
| Timeline |
| General Motors |
| EVERSOURCE ENERGY |
GM and EVERSOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and EVERSOURCE
The main advantage of trading using opposite GM and EVERSOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, EVERSOURCE 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 EVERSOURCE will offset losses from the drop in EVERSOURCE's long position.The idea behind General Motors and EVERSOURCE ENERGY 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.| EVERSOURCE vs. ScanSource | EVERSOURCE vs. Viemed Healthcare | EVERSOURCE vs. Ameriprise Financial | EVERSOURCE vs. Cumberland Pharmaceuticals |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |