Correlation Between GM and 465685AP0
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and ITC HLDGS P, you can compare the effects of market volatilities on GM and 465685AP0 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 465685AP0. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 465685AP0.
Diversification Opportunities for GM and 465685AP0
Excellent diversification
The 3 months correlation between GM and 465685AP0 is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and ITC HLDGS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITC HLDGS P 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 465685AP0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITC HLDGS P has no effect on the direction of GM i.e., GM and 465685AP0 go up and down completely randomly.
Pair Corralation between GM and 465685AP0
Allowing for the 90-day total investment horizon General Motors is expected to generate 2.67 times more return on investment than 465685AP0. However, GM is 2.67 times more volatile than ITC HLDGS P. It trades about 0.25 of its potential returns per unit of risk. ITC HLDGS P is currently generating about -0.21 per unit of risk. If you would invest 5,272 in General Motors on August 25, 2024 and sell it today you would earn a total of 581.00 from holding General Motors or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. ITC HLDGS P
Performance |
| Timeline |
| General Motors |
| ITC HLDGS P |
GM and 465685AP0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and 465685AP0
The main advantage of trading using opposite GM and 465685AP0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 465685AP0 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 465685AP0 will offset losses from the drop in 465685AP0's long position.The idea behind General Motors and ITC HLDGS P 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.| 465685AP0 vs. AEP TEX INC | 465685AP0 vs. US BANK NATIONAL | 465685AP0 vs. Dupont De Nemours | 465685AP0 vs. The Travelers Companies |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |