Correlation Between GM and 37190AAA7
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and G 175 10 APR 26, you can compare the effects of market volatilities on GM and 37190AAA7 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 37190AAA7. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 37190AAA7.
Diversification Opportunities for GM and 37190AAA7
Very weak diversification
The 3 months correlation between GM and 37190AAA7 is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and G 175 10 APR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 37190AAA7 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 37190AAA7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 37190AAA7 has no effect on the direction of GM i.e., GM and 37190AAA7 go up and down completely randomly.
Pair Corralation between GM and 37190AAA7
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.93 times more return on investment than 37190AAA7. However, General Motors is 1.08 times less risky than 37190AAA7. It trades about -0.12 of its potential returns per unit of risk. G 175 10 APR 26 is currently generating about -0.35 per unit of risk. If you would invest 5,230 in General Motors on October 13, 2024 and sell it today you would lose (245.00) from holding General Motors or give up 4.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 42.11% |
| Values | Daily Returns |
General Motors vs. G 175 10 APR 26
Performance |
| Timeline |
| General Motors |
| 37190AAA7 |
GM and 37190AAA7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and 37190AAA7
The main advantage of trading using opposite GM and 37190AAA7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 37190AAA7 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 37190AAA7 will offset losses from the drop in 37190AAA7's long position.The idea behind General Motors and G 175 10 APR 26 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.| 37190AAA7 vs. Sapiens International | 37190AAA7 vs. CVR Partners LP | 37190AAA7 vs. Kingboard Chemical Holdings | 37190AAA7 vs. Park Electrochemical |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |