Correlation Between GM and Anew Medical,
Can any of the company-specific risk be diversified away by investing in both GM and Anew Medical, 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 Anew Medical, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Anew Medical,, you can compare the effects of market volatilities on GM and Anew Medical, 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 Anew Medical,. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Anew Medical,.
Diversification Opportunities for GM and Anew Medical,
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GM and Anew is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Anew Medical, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anew Medical, 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 Anew Medical,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anew Medical, has no effect on the direction of GM i.e., GM and Anew Medical, go up and down completely randomly.
Pair Corralation between GM and Anew Medical,
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.13 times more return on investment than Anew Medical,. However, General Motors is 7.72 times less risky than Anew Medical,. It trades about 0.08 of its potential returns per unit of risk. Anew Medical, is currently generating about -0.08 per unit of risk. If you would invest 4,551 in General Motors on September 1, 2024 and sell it today you would earn a total of 1,008 from holding General Motors or generate 22.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 58.73% |
| Values | Daily Returns |
General Motors vs. Anew Medical,
Performance |
| Timeline |
| General Motors |
| Anew Medical, |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Anew Medical, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Anew Medical,
The main advantage of trading using opposite GM and Anew Medical, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Anew Medical, 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 Anew Medical, will offset losses from the drop in Anew Medical,'s long position.The idea behind General Motors and Anew Medical, 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.| Anew Medical, vs. Dominos Pizza | Anew Medical, vs. Mangazeya Mining | Anew Medical, vs. Arrow Electronics | Anew Medical, vs. Perseus Mining Limited |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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