Correlation Between GM and VALORA HLDG
Can any of the company-specific risk be diversified away by investing in both GM and VALORA HLDG at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GM and VALORA HLDG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and VALORA HLDG OPEN, you can compare the effects of market volatilities on GM and VALORA HLDG 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 VALORA HLDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and VALORA HLDG.
Diversification Opportunities for GM and VALORA HLDG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and VALORA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and VALORA HLDG OPEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VALORA HLDG OPEN 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 VALORA HLDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VALORA HLDG OPEN has no effect on the direction of GM i.e., GM and VALORA HLDG go up and down completely randomly.
Pair Corralation between GM and VALORA HLDG
If you would invest 3,576 in General Motors on September 20, 2024 and sell it today you would earn a total of 1,539 from holding General Motors or generate 43.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Motors vs. VALORA HLDG OPEN
Performance |
| Timeline |
| General Motors |
| VALORA HLDG OPEN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and VALORA HLDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and VALORA HLDG
The main advantage of trading using opposite GM and VALORA HLDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, VALORA HLDG 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 VALORA HLDG will offset losses from the drop in VALORA HLDG's long position.The idea behind General Motors and VALORA HLDG OPEN 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.| VALORA HLDG vs. Pictet Ch Precious | VALORA HLDG vs. Baloise Swiss Property | VALORA HLDG vs. CSIF I Bond | VALORA HLDG vs. Synchrony Swiss Real |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |