Correlation Between GM and 88579YAY7
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By analyzing existing cross correlation between General Motors and 3M 2875 percent, you can compare the effects of market volatilities on GM and 88579YAY7 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 88579YAY7. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 88579YAY7.
Diversification Opportunities for GM and 88579YAY7
Excellent diversification
The 3 months correlation between GM and 88579YAY7 is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and 3M 2875 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3M 2875 percent 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 88579YAY7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3M 2875 percent has no effect on the direction of GM i.e., GM and 88579YAY7 go up and down completely randomly.
Pair Corralation between GM and 88579YAY7
Allowing for the 90-day total investment horizon General Motors is expected to generate 4.66 times more return on investment than 88579YAY7. However, GM is 4.66 times more volatile than 3M 2875 percent. It trades about 0.05 of its potential returns per unit of risk. 3M 2875 percent is currently generating about 0.0 per unit of risk. If you would invest 3,805 in General Motors on September 3, 2024 and sell it today you would earn a total of 1,754 from holding General Motors or generate 46.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
General Motors vs. 3M 2875 percent
Performance |
| Timeline |
| General Motors |
| 3M 2875 percent |
GM and 88579YAY7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and 88579YAY7
The main advantage of trading using opposite GM and 88579YAY7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 88579YAY7 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 88579YAY7 will offset losses from the drop in 88579YAY7's long position.The idea behind General Motors and 3M 2875 percent 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.| 88579YAY7 vs. The Travelers Companies | 88579YAY7 vs. GE Aerospace | 88579YAY7 vs. Walmart | 88579YAY7 vs. Pfizer Inc |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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