Correlation Between GM and MCBRAC
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By analyzing existing cross correlation between General Motors and MCBRAC 725 30 JUN 31, you can compare the effects of market volatilities on GM and MCBRAC 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 MCBRAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and MCBRAC.
Diversification Opportunities for GM and MCBRAC
Pay attention - limited upside
The 3 months correlation between GM and MCBRAC is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and MCBRAC 725 30 JUN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCBRAC 725 30 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 MCBRAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCBRAC 725 30 has no effect on the direction of GM i.e., GM and MCBRAC go up and down completely randomly.
Pair Corralation between GM and MCBRAC
Allowing for the 90-day total investment horizon GM is expected to generate 1.63 times less return on investment than MCBRAC. But when comparing it to its historical volatility, General Motors is 1.17 times less risky than MCBRAC. It trades about 0.17 of its potential returns per unit of risk. MCBRAC 725 30 JUN 31 is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 8,484 in MCBRAC 725 30 JUN 31 on September 1, 2024 and sell it today you would earn a total of 441.00 from holding MCBRAC 725 30 JUN 31 or generate 5.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
General Motors vs. MCBRAC 725 30 JUN 31
Performance |
| Timeline |
| General Motors |
| MCBRAC 725 30 |
GM and MCBRAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and MCBRAC
The main advantage of trading using opposite GM and MCBRAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, MCBRAC 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 MCBRAC will offset losses from the drop in MCBRAC's long position.The idea behind General Motors and MCBRAC 725 30 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.| MCBRAC vs. Bassett Furniture Industries | MCBRAC vs. LENSAR Inc | MCBRAC vs. Live Ventures | MCBRAC vs. Cardinal Health |
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 Stocks Directory module to find actively traded stocks across global markets.
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