Correlation Between GM and 31429KAG8
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By analyzing existing cross correlation between General Motors and CCDJ 44 23 AUG 25, you can compare the effects of market volatilities on GM and 31429KAG8 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 31429KAG8. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 31429KAG8.
Diversification Opportunities for GM and 31429KAG8
Weak diversification
The 3 months correlation between GM and 31429KAG8 is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and CCDJ 44 23 AUG 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCDJ 44 23 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 31429KAG8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCDJ 44 23 has no effect on the direction of GM i.e., GM and 31429KAG8 go up and down completely randomly.
Pair Corralation between GM and 31429KAG8
Allowing for the 90-day total investment horizon General Motors is expected to generate 24.06 times more return on investment than 31429KAG8. However, GM is 24.06 times more volatile than CCDJ 44 23 AUG 25. It trades about 0.08 of its potential returns per unit of risk. CCDJ 44 23 AUG 25 is currently generating about 0.11 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 | 57.14% |
| Values | Daily Returns |
General Motors vs. CCDJ 44 23 AUG 25
Performance |
| Timeline |
| General Motors |
| CCDJ 44 23 |
GM and 31429KAG8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and 31429KAG8
The main advantage of trading using opposite GM and 31429KAG8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 31429KAG8 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 31429KAG8 will offset losses from the drop in 31429KAG8's long position.The idea behind General Motors and CCDJ 44 23 AUG 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.| 31429KAG8 vs. ATT Inc | 31429KAG8 vs. Home Depot | 31429KAG8 vs. Cisco Systems | 31429KAG8 vs. Dupont De Nemours |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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