Correlation Between GM and SIEGR
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By analyzing existing cross correlation between General Motors and SIEGR 6125 17 AUG 26, you can compare the effects of market volatilities on GM and SIEGR 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 SIEGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and SIEGR.
Diversification Opportunities for GM and SIEGR
Good diversification
The 3 months correlation between GM and SIEGR is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and SIEGR 6125 17 AUG 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEGR 6125 17 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 SIEGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEGR 6125 17 has no effect on the direction of GM i.e., GM and SIEGR go up and down completely randomly.
Pair Corralation between GM and SIEGR
Allowing for the 90-day total investment horizon General Motors is expected to generate 6.07 times more return on investment than SIEGR. However, GM is 6.07 times more volatile than SIEGR 6125 17 AUG 26. It trades about 0.07 of its potential returns per unit of risk. SIEGR 6125 17 AUG 26 is currently generating about -0.01 per unit of risk. If you would invest 3,536 in General Motors on August 31, 2024 and sell it today you would earn a total of 2,023 from holding General Motors or generate 57.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.81% |
| Values | Daily Returns |
General Motors vs. SIEGR 6125 17 AUG 26
Performance |
| Timeline |
| General Motors |
| SIEGR 6125 17 |
GM and SIEGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and SIEGR
The main advantage of trading using opposite GM and SIEGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, SIEGR 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 SIEGR will offset losses from the drop in SIEGR's long position.The idea behind General Motors and SIEGR 6125 17 AUG 26 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.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 Transaction History module to view history of all your transactions and understand their impact on performance.
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