Correlation Between GM and 69349LAS7
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and PNC BANK NATIONAL, you can compare the effects of market volatilities on GM and 69349LAS7 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 69349LAS7. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 69349LAS7.
Diversification Opportunities for GM and 69349LAS7
Excellent diversification
The 3 months correlation between GM and 69349LAS7 is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and PNC BANK NATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNC BANK NATIONAL 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 69349LAS7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNC BANK NATIONAL has no effect on the direction of GM i.e., GM and 69349LAS7 go up and down completely randomly.
Pair Corralation between GM and 69349LAS7
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.69 times more return on investment than 69349LAS7. However, GM is 1.69 times more volatile than PNC BANK NATIONAL. It trades about 0.12 of its potential returns per unit of risk. PNC BANK NATIONAL is currently generating about -0.21 per unit of risk. If you would invest 5,197 in General Motors on August 31, 2024 and sell it today you would earn a total of 353.00 from holding General Motors or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
General Motors vs. PNC BANK NATIONAL
Performance |
| Timeline |
| General Motors |
| PNC BANK NATIONAL |
GM and 69349LAS7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and 69349LAS7
The main advantage of trading using opposite GM and 69349LAS7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 69349LAS7 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 69349LAS7 will offset losses from the drop in 69349LAS7's long position.The idea behind General Motors and PNC BANK NATIONAL 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.| 69349LAS7 vs. Sable Offshore Corp | 69349LAS7 vs. NH Foods Ltd | 69349LAS7 vs. Harmony Gold Mining | 69349LAS7 vs. Chester Mining |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |