Correlation Between GM and 36262GAD3
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By analyzing existing cross correlation between General Motors and GXO 265 15 JUL 31, you can compare the effects of market volatilities on GM and 36262GAD3 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 36262GAD3. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 36262GAD3.
Diversification Opportunities for GM and 36262GAD3
Very good diversification
The 3 months correlation between GM and 36262GAD3 is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and GXO 265 15 JUL 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GXO 265 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 36262GAD3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GXO 265 15 has no effect on the direction of GM i.e., GM and 36262GAD3 go up and down completely randomly.
Pair Corralation between GM and 36262GAD3
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.59 times more return on investment than 36262GAD3. However, GM is 1.59 times more volatile than GXO 265 15 JUL 31. It trades about 0.08 of its potential returns per unit of risk. GXO 265 15 JUL 31 is currently generating about 0.02 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 Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
General Motors vs. GXO 265 15 JUL 31
Performance |
| Timeline |
| General Motors |
| GXO 265 15 |
GM and 36262GAD3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and 36262GAD3
The main advantage of trading using opposite GM and 36262GAD3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 36262GAD3 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 36262GAD3 will offset losses from the drop in 36262GAD3's long position.The idea behind General Motors and GXO 265 15 JUL 31 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.| 36262GAD3 vs. ATT Inc | 36262GAD3 vs. Home Depot | 36262GAD3 vs. Cisco Systems | 36262GAD3 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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