Correlation Between GM and GBLATL
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By analyzing existing cross correlation between General Motors and GBLATL 3125 15 JUN 31, you can compare the effects of market volatilities on GM and GBLATL 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 GBLATL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and GBLATL.
Diversification Opportunities for GM and GBLATL
Very good diversification
The 3 months correlation between GM and GBLATL is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and GBLATL 3125 15 JUN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBLATL 3125 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 GBLATL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GBLATL 3125 15 has no effect on the direction of GM i.e., GM and GBLATL go up and down completely randomly.
Pair Corralation between GM and GBLATL
Allowing for the 90-day total investment horizon General Motors is expected to generate 2.05 times more return on investment than GBLATL. However, GM is 2.05 times more volatile than GBLATL 3125 15 JUN 31. It trades about 0.05 of its potential returns per unit of risk. GBLATL 3125 15 JUN 31 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 | Insignificant |
| Accuracy | 69.15% |
| Values | Daily Returns |
General Motors vs. GBLATL 3125 15 JUN 31
Performance |
| Timeline |
| General Motors |
| GBLATL 3125 15 |
GM and GBLATL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and GBLATL
The main advantage of trading using opposite GM and GBLATL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, GBLATL 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 GBLATL will offset losses from the drop in GBLATL's long position.The idea behind General Motors and GBLATL 3125 15 JUN 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.| GBLATL vs. Cars Inc | GBLATL vs. Uber Technologies | GBLATL vs. American Axle Manufacturing | GBLATL vs. Adient PLC |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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