Correlation Between GM and TNEMAK
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By analyzing existing cross correlation between General Motors and TNEMAK 3625 28 JUN 31, you can compare the effects of market volatilities on GM and TNEMAK 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 TNEMAK. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and TNEMAK.
Diversification Opportunities for GM and TNEMAK
Average diversification
The 3 months correlation between GM and TNEMAK is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and TNEMAK 3625 28 JUN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNEMAK 3625 28 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 TNEMAK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNEMAK 3625 28 has no effect on the direction of GM i.e., GM and TNEMAK go up and down completely randomly.
Pair Corralation between GM and TNEMAK
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.19 times more return on investment than TNEMAK. However, GM is 1.19 times more volatile than TNEMAK 3625 28 JUN 31. It trades about 0.16 of its potential returns per unit of risk. TNEMAK 3625 28 JUN 31 is currently generating about 0.1 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 Together |
| Strength | Insignificant |
| Accuracy | 38.1% |
| Values | Daily Returns |
General Motors vs. TNEMAK 3625 28 JUN 31
Performance |
| Timeline |
| General Motors |
| TNEMAK 3625 28 |
GM and TNEMAK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and TNEMAK
The main advantage of trading using opposite GM and TNEMAK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, TNEMAK 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 TNEMAK will offset losses from the drop in TNEMAK's long position.The idea behind General Motors and TNEMAK 3625 28 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.| TNEMAK vs. Fernhill Beverage | TNEMAK vs. Vita Coco | TNEMAK vs. Fevertree Drinks Plc | TNEMAK vs. Westrock Coffee |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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