Correlation Between GM and GLENLN
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By analyzing existing cross correlation between General Motors and GLENLN 4 27 MAR 27, you can compare the effects of market volatilities on GM and GLENLN 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 GLENLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and GLENLN.
Diversification Opportunities for GM and GLENLN
Excellent diversification
The 3 months correlation between GM and GLENLN is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and GLENLN 4 27 MAR 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLENLN 4 27 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 GLENLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLENLN 4 27 has no effect on the direction of GM i.e., GM and GLENLN go up and down completely randomly.
Pair Corralation between GM and GLENLN
Allowing for the 90-day total investment horizon General Motors is expected to generate 6.12 times more return on investment than GLENLN. However, GM is 6.12 times more volatile than GLENLN 4 27 MAR 27. It trades about 0.05 of its potential returns per unit of risk. GLENLN 4 27 MAR 27 is currently generating about 0.01 per unit of risk. If you would invest 3,778 in General Motors on September 2, 2024 and sell it today you would earn a total of 1,781 from holding General Motors or generate 47.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 73.39% |
| Values | Daily Returns |
General Motors vs. GLENLN 4 27 MAR 27
Performance |
| Timeline |
| General Motors |
| GLENLN 4 27 |
GM and GLENLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and GLENLN
The main advantage of trading using opposite GM and GLENLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, GLENLN 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 GLENLN will offset losses from the drop in GLENLN's long position.The idea behind General Motors and GLENLN 4 27 MAR 27 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.| GLENLN vs. Chemours Co | GLENLN vs. Sensient Technologies | GLENLN vs. Western Acquisition Ventures | GLENLN vs. Griffon |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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