Correlation Between GM and 784710AA3
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By analyzing existing cross correlation between General Motors and SSM HEALTH CARE, you can compare the effects of market volatilities on GM and 784710AA3 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 784710AA3. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 784710AA3.
Diversification Opportunities for GM and 784710AA3
Excellent diversification
The 3 months correlation between GM and 784710AA3 is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and SSM HEALTH CARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSM HEALTH CARE 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 784710AA3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSM HEALTH CARE has no effect on the direction of GM i.e., GM and 784710AA3 go up and down completely randomly.
Pair Corralation between GM and 784710AA3
Allowing for the 90-day total investment horizon General Motors is expected to generate 4.11 times more return on investment than 784710AA3. However, GM is 4.11 times more volatile than SSM HEALTH CARE. It trades about 0.12 of its potential returns per unit of risk. SSM HEALTH CARE is currently generating about -0.12 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 | 72.73% |
| Values | Daily Returns |
General Motors vs. SSM HEALTH CARE
Performance |
| Timeline |
| General Motors |
| SSM HEALTH CARE |
GM and 784710AA3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and 784710AA3
The main advantage of trading using opposite GM and 784710AA3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 784710AA3 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 784710AA3 will offset losses from the drop in 784710AA3's long position.The idea behind General Motors and SSM HEALTH CARE 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.| 784710AA3 vs. AEP TEX INC | 784710AA3 vs. US BANK NATIONAL | 784710AA3 vs. FactSet Research Systems | 784710AA3 vs. Aurora Innovation |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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