Correlation Between GM and 59523UAP2
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and MID AMERICA APTS L, you can compare the effects of market volatilities on GM and 59523UAP2 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 59523UAP2. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 59523UAP2.
Diversification Opportunities for GM and 59523UAP2
Excellent diversification
The 3 months correlation between GM and 59523UAP2 is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and MID AMERICA APTS L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MID AMERICA APTS 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 59523UAP2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MID AMERICA APTS has no effect on the direction of GM i.e., GM and 59523UAP2 go up and down completely randomly.
Pair Corralation between GM and 59523UAP2
Allowing for the 90-day total investment horizon General Motors is expected to generate 2.17 times more return on investment than 59523UAP2. However, GM is 2.17 times more volatile than MID AMERICA APTS L. It trades about 0.16 of its potential returns per unit of risk. MID AMERICA APTS L is currently generating about -0.26 per unit of risk. If you would invest 5,096 in General Motors on September 2, 2024 and sell it today you would earn a total of 463.00 from holding General Motors or generate 9.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 71.43% |
Values | Daily Returns |
General Motors vs. MID AMERICA APTS L
Performance |
Timeline |
General Motors |
MID AMERICA APTS |
GM and 59523UAP2 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GM and 59523UAP2
The main advantage of trading using opposite GM and 59523UAP2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 59523UAP2 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 59523UAP2 will offset losses from the drop in 59523UAP2's long position.The idea behind General Motors and MID AMERICA APTS L 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.59523UAP2 vs. AEP TEX INC | 59523UAP2 vs. US BANK NATIONAL | 59523UAP2 vs. American Express | 59523UAP2 vs. Chevron Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
CEOs Directory Screen CEOs from public companies around the world | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |