Correlation Between GM and 44107TAV8
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By analyzing existing cross correlation between General Motors and HOST HOTELS RESORTS, you can compare the effects of market volatilities on GM and 44107TAV8 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 44107TAV8. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 44107TAV8.
Diversification Opportunities for GM and 44107TAV8
Good diversification
The 3 months correlation between GM and 44107TAV8 is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and HOST HOTELS RESORTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOST HOTELS RESORTS 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 44107TAV8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOST HOTELS RESORTS has no effect on the direction of GM i.e., GM and 44107TAV8 go up and down completely randomly.
Pair Corralation between GM and 44107TAV8
Allowing for the 90-day total investment horizon General Motors is expected to generate 7.99 times more return on investment than 44107TAV8. However, GM is 7.99 times more volatile than HOST HOTELS RESORTS. It trades about 0.11 of its potential returns per unit of risk. HOST HOTELS RESORTS is currently generating about 0.02 per unit of risk. If you would invest 3,331 in General Motors on September 4, 2024 and sell it today you would earn a total of 2,035 from holding General Motors or generate 61.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.85% |
| Values | Daily Returns |
General Motors vs. HOST HOTELS RESORTS
Performance |
| Timeline |
| General Motors |
| HOST HOTELS RESORTS |
GM and 44107TAV8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and 44107TAV8
The main advantage of trading using opposite GM and 44107TAV8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 44107TAV8 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 44107TAV8 will offset losses from the drop in 44107TAV8's long position.The idea behind General Motors and HOST HOTELS RESORTS 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.| 44107TAV8 vs. Mannatech Incorporated | 44107TAV8 vs. Amkor Technology | 44107TAV8 vs. Inter Parfums | 44107TAV8 vs. Virgin Group Acquisition |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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