Correlation Between GM and WB Burgers
Can any of the company-specific risk be diversified away by investing in both GM and WB Burgers 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 WB Burgers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and WB Burgers Asia, you can compare the effects of market volatilities on GM and WB Burgers 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 WB Burgers. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and WB Burgers.
Diversification Opportunities for GM and WB Burgers
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GM and WBBA is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and WB Burgers Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WB Burgers Asia 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 WB Burgers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WB Burgers Asia has no effect on the direction of GM i.e., GM and WB Burgers go up and down completely randomly.
Pair Corralation between GM and WB Burgers
Allowing for the 90-day total investment horizon GM is expected to generate 153.9 times less return on investment than WB Burgers. But when comparing it to its historical volatility, General Motors is 79.0 times less risky than WB Burgers. It trades about 0.08 of its potential returns per unit of risk. WB Burgers Asia is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 9.00 in WB Burgers Asia on September 12, 2024 and sell it today you would earn a total of 31.00 from holding WB Burgers Asia or generate 344.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 60.12% |
| Values | Daily Returns |
General Motors vs. WB Burgers Asia
Performance |
| Timeline |
| General Motors |
| WB Burgers Asia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and WB Burgers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and WB Burgers
The main advantage of trading using opposite GM and WB Burgers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, WB Burgers 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 WB Burgers will offset losses from the drop in WB Burgers' long position.The idea behind General Motors and WB Burgers Asia 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.| WB Burgers vs. Oncologix Tech | WB Burgers vs. Blockchain Industries | WB Burgers vs. TransAKT | WB Burgers vs. China Health Management |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |