Correlation Between GM and VSBLTY Groupe
Can any of the company-specific risk be diversified away by investing in both GM and VSBLTY Groupe 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 VSBLTY Groupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and VSBLTY Groupe Technologies, you can compare the effects of market volatilities on GM and VSBLTY Groupe 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 VSBLTY Groupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and VSBLTY Groupe.
Diversification Opportunities for GM and VSBLTY Groupe
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between GM and VSBLTY is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and VSBLTY Groupe Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VSBLTY Groupe Techno 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 VSBLTY Groupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VSBLTY Groupe Techno has no effect on the direction of GM i.e., GM and VSBLTY Groupe go up and down completely randomly.
Pair Corralation between GM and VSBLTY Groupe
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.16 times more return on investment than VSBLTY Groupe. However, General Motors is 6.35 times less risky than VSBLTY Groupe. It trades about 0.07 of its potential returns per unit of risk. VSBLTY Groupe Technologies is currently generating about 0.01 per unit of risk. If you would invest 3,524 in General Motors on August 28, 2024 and sell it today you would earn a total of 2,496 from holding General Motors or generate 70.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. VSBLTY Groupe Technologies
Performance |
| Timeline |
| General Motors |
| VSBLTY Groupe Techno |
GM and VSBLTY Groupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and VSBLTY Groupe
The main advantage of trading using opposite GM and VSBLTY Groupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, VSBLTY Groupe 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 VSBLTY Groupe will offset losses from the drop in VSBLTY Groupe's long position.The idea behind General Motors and VSBLTY Groupe Technologies 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.| VSBLTY Groupe vs. RenoWorks Software | VSBLTY Groupe vs. 01 Communique Laboratory | VSBLTY Groupe vs. LifeSpeak | VSBLTY Groupe vs. Adcore 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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