Correlation Between GM and HYNMTR
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By analyzing existing cross correlation between General Motors and HYNMTR 13 08 JAN 26, you can compare the effects of market volatilities on GM and HYNMTR 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 HYNMTR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and HYNMTR.
Diversification Opportunities for GM and HYNMTR
Average diversification
The 3 months correlation between GM and HYNMTR is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and HYNMTR 13 08 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYNMTR 13 08 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 HYNMTR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYNMTR 13 08 has no effect on the direction of GM i.e., GM and HYNMTR go up and down completely randomly.
Pair Corralation between GM and HYNMTR
Allowing for the 90-day total investment horizon General Motors is expected to generate 3.41 times more return on investment than HYNMTR. However, GM is 3.41 times more volatile than HYNMTR 13 08 JAN 26. It trades about 0.05 of its potential returns per unit of risk. HYNMTR 13 08 JAN 26 is currently generating about -0.06 per unit of risk. If you would invest 3,816 in General Motors on November 5, 2024 and sell it today you would earn a total of 974.00 from holding General Motors or generate 25.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
General Motors vs. HYNMTR 13 08 JAN 26
Performance |
| Timeline |
| General Motors |
| HYNMTR 13 08 |
GM and HYNMTR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and HYNMTR
The main advantage of trading using opposite GM and HYNMTR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, HYNMTR 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 HYNMTR will offset losses from the drop in HYNMTR's long position.The idea behind General Motors and HYNMTR 13 08 JAN 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.| HYNMTR vs. AEP TEX INC | HYNMTR vs. US BANK NATIONAL | HYNMTR vs. Reliance Global Group | HYNMTR vs. Bayerische Motoren Werke |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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