Correlation Between GM and 31429KAD5
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and CCDJ 205 10 FEB 25, you can compare the effects of market volatilities on GM and 31429KAD5 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 31429KAD5. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 31429KAD5.
Diversification Opportunities for GM and 31429KAD5
Modest diversification
The 3 months correlation between GM and 31429KAD5 is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and CCDJ 205 10 FEB 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCDJ 205 10 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 31429KAD5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCDJ 205 10 has no effect on the direction of GM i.e., GM and 31429KAD5 go up and down completely randomly.
Pair Corralation between GM and 31429KAD5
Allowing for the 90-day total investment horizon General Motors is expected to generate 3.54 times more return on investment than 31429KAD5. However, GM is 3.54 times more volatile than CCDJ 205 10 FEB 25. It trades about 0.08 of its potential returns per unit of risk. CCDJ 205 10 FEB 25 is currently generating about -0.08 per unit of risk. If you would invest 4,551 in General Motors on September 1, 2024 and sell it today you would earn a total of 1,008 from holding General Motors or generate 22.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 42.86% |
| Values | Daily Returns |
General Motors vs. CCDJ 205 10 FEB 25
Performance |
| Timeline |
| General Motors |
| CCDJ 205 10 |
GM and 31429KAD5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and 31429KAD5
The main advantage of trading using opposite GM and 31429KAD5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 31429KAD5 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 31429KAD5 will offset losses from the drop in 31429KAD5's long position.The idea behind General Motors and CCDJ 205 10 FEB 25 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.| 31429KAD5 vs. Cars Inc | 31429KAD5 vs. Teleflex Incorporated | 31429KAD5 vs. Rivian Automotive | 31429KAD5 vs. Gentex |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |