Correlation Between GM and 50249AAG8
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and LYB 225 01 OCT 30, you can compare the effects of market volatilities on GM and 50249AAG8 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 50249AAG8. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 50249AAG8.
Diversification Opportunities for GM and 50249AAG8
Pay attention - limited upside
The 3 months correlation between GM and 50249AAG8 is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and LYB 225 01 OCT 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYB 225 01 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 50249AAG8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYB 225 01 has no effect on the direction of GM i.e., GM and 50249AAG8 go up and down completely randomly.
Pair Corralation between GM and 50249AAG8
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.74 times more return on investment than 50249AAG8. However, GM is 1.74 times more volatile than LYB 225 01 OCT 30. It trades about 0.14 of its potential returns per unit of risk. LYB 225 01 OCT 30 is currently generating about 0.06 per unit of risk. If you would invest 5,292 in General Motors on August 24, 2024 and sell it today you would earn a total of 276.00 from holding General Motors or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
General Motors vs. LYB 225 01 OCT 30
Performance |
| Timeline |
| General Motors |
| LYB 225 01 |
GM and 50249AAG8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and 50249AAG8
The main advantage of trading using opposite GM and 50249AAG8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 50249AAG8 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 50249AAG8 will offset losses from the drop in 50249AAG8's long position.The idea behind General Motors and LYB 225 01 OCT 30 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.| 50249AAG8 vs. Evertz Technologies Limited | 50249AAG8 vs. Transocean | 50249AAG8 vs. Western Digital | 50249AAG8 vs. Digi International |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |