Correlation Between GM and 91159HJJ0
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By analyzing existing cross correlation between General Motors and USB 585 21 OCT 33, you can compare the effects of market volatilities on GM and 91159HJJ0 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 91159HJJ0. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 91159HJJ0.
Diversification Opportunities for GM and 91159HJJ0
Average diversification
The 3 months correlation between GM and 91159HJJ0 is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and USB 585 21 OCT 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USB 585 21 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 91159HJJ0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USB 585 21 has no effect on the direction of GM i.e., GM and 91159HJJ0 go up and down completely randomly.
Pair Corralation between GM and 91159HJJ0
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the 91159HJJ0. In addition to that, GM is 5.56 times more volatile than USB 585 21 OCT 33. It trades about -0.01 of its total potential returns per unit of risk. USB 585 21 OCT 33 is currently generating about 0.18 per unit of volatility. If you would invest 10,280 in USB 585 21 OCT 33 on December 1, 2024 and sell it today you would earn a total of 127.00 from holding USB 585 21 OCT 33 or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. USB 585 21 OCT 33
Performance |
| Timeline |
| General Motors |
| USB 585 21 |
GM and 91159HJJ0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and 91159HJJ0
The main advantage of trading using opposite GM and 91159HJJ0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 91159HJJ0 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 91159HJJ0 will offset losses from the drop in 91159HJJ0's long position.The idea behind General Motors and USB 585 21 OCT 33 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.| 91159HJJ0 vs. AEP TEX INC | 91159HJJ0 vs. KORE Mining | 91159HJJ0 vs. iShares Global Consumer | 91159HJJ0 vs. Exxon Mobil Corp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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