Correlation Between GM and Deutsche Highome

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both GM and Deutsche Highome 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 Deutsche Highome into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Deutsche Highome Opportunities, you can compare the effects of market volatilities on GM and Deutsche Highome 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 Deutsche Highome. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Deutsche Highome.

Diversification Opportunities for GM and Deutsche Highome

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GM and Deutsche is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Deutsche Highome Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Highome Opp 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 Deutsche Highome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Highome Opp has no effect on the direction of GM i.e., GM and Deutsche Highome go up and down completely randomly.

Pair Corralation between GM and Deutsche Highome

If you would invest  3,283  in General Motors on September 12, 2024 and sell it today you would earn a total of  1,991  from holding General Motors or generate 60.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

General Motors  vs.  Deutsche Highome Opportunities

 Performance 
       Timeline  
General Motors 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in General Motors are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, GM displayed solid returns over the last few months and may actually be approaching a breakup point.
Deutsche Highome Opp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Deutsche Highome Opportunities has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Deutsche Highome is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

GM and Deutsche Highome Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GM and Deutsche Highome

The main advantage of trading using opposite GM and Deutsche Highome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Deutsche Highome 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 Deutsche Highome will offset losses from the drop in Deutsche Highome's long position.
The idea behind General Motors and Deutsche Highome Opportunities 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.
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

Other Complementary Tools

Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
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
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios